I am in the midst of spec-ing out a server to run a SQL Server based auto dealer management system. I plan on using Terminal Services to run the client software. Right now there are only 38 users, and the client software memory usage is quite small(9MB or so per user). There will be no other software run on this server. I know SQL and TS is usually a no-no, but I am trying to keep the costs down. I will not utilize AD (for now), and DHCP is handled by the router. I was thinking along the lines of twin 3.06 ghz Xeons with 8GB of RAM, running W2K Advanced Server. Are there any special tricks, such as processor affinity (SQL using one processor, Windows and TS using the other), or anything else creative that can make this possible and work well? Honestly, your best bet is to test it and see how it works, but I suspect you may have an overloaded server there if you're planning to maintain both the database and the terminal sessions on the same server.
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