I would like to read about your installation as you move forward.
I'm looking at an LTSP myself for a 'small' office setup. What I am 
considering:
1. Dual PIII raid server with 1.5g RAM.
2. K12LTSP install (because it's already patched)
3. Microtel clients from walmart.com with PXE.
   ( I know someone who rolled out 70+ of these recently and loves them.)
4. VMWare running on the server. There are just some things I *can't* get 
    away from Windows on. 
5. Due to pricing, I tossed the idea of running a seperate NT or 2k server 
    with rdesktop in favor of a slightly more beefed up server with 
    VMWare. Win licenses are still an issue but only half the price or 
    less once Terminal Services isn't any issue any more.
6. Currently there are three clients on this server. It will probably be 
    scaled up to eight to ten depending upon the needs of the business.

-- 
Patrick Fleming, EA
Licensed to represent taxpayers
before Exam, Appeals, and Conference 
divisions of the IRS