As a point of reference in terms of ‘server’ it is just a PC with SQL loaded.
Personally the biggest install I have setup is 4 terminals and one of those was the acting ‘server’ with sql.
The machines were a Core2Duo 3Ghz with 4GB Ram, Windows 7 obviously (pro but not sure if needed to be pro) and no issues at all.
4 terminals with 1 terminal as server is my largest install to date, not sure how far I could push a core2duo machine with SQL and a terminal but absolutely no problem running 3 additional terminals from it so would expert could easily add a couple more without any issues but havn’t tried yet would be interested to know how many before performance was effected. 
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