Question : Problem: 2000 Terminal Services vs. 2003 RDP

I am replacing a dying server running MS Server 2000 with a new server running MS Server 2003. The current 2000 server is running terminal services so that three offsite users can access it and run applications locally. Everyone I ask has a different answer for what the differences between Remote Desktop and Terminal Services truly are, so I am not sure how to proceed.

Do I need to configure terminal services and obtain special licenses for the new machine, or do I just check the box for remote desktop and have users connect that way?

Answer : Problem: 2000 Terminal Services vs. 2003 RDP

If three users are supposed to be running applications on this machine, you'll need to install Terminal Services on it (was named "Terminal Services in Application Mode" on Windows 2000).
You'll need an activated TS license server running on W2k3 (preferably on your DC).
You'll need "Per User" or "Per Device" TS CALs for your users or your devices, depending on which suits your need better.