A Linux terminal server needs
- enough storage for the OS
- 50 megabytes per client
- a NIC for the outside world
- a gigabit/s NIC for each 50 clients
- storage for local data (500 gB or more in RAID 1)
- storage for /home directories
- CPU power (100 MHz or so per client)
To be really useful, you want all the NICs, drives and the CPU to run all out simultaneously. That sounds a lot like some of the beautiful 64 bit motherboards out recently. Check out TYAN’s S3992 or S4985. Fully populated they can serve 100 to 200 clients simultaneously for a cost of about $50 per client. That is about the same as the maker of that other OS charges just for permission to connect to their servers ;-). With a Linux terminal server, a school actually gets some value for the money spent.