QUOTE(BudMan @ Apr 1 2005, 13:33)
1) Yes (needs to be XP pro to join the domain)
2) yes - this and much more is possible (login script)
3) yes - kind of the point of a domain

4) hmmm - yes you can run terminal server, and users can run applications on the server using a terminal session.. Keep in mind this a sep lic, and any software - say office that is run this way has to be licensed for ALL users that can access it.. YOu can not just buy 1 copy of office, and let 50 users run it using terminal server.
terminal services info;
http://www.microsoft.com/windowsserver2003...es/default.mspx[right][snapback]585708647[/snapback][/right]
Budman did a good job of covering all of your questions, but I have an addition for #4. Depending on the kind of application, you may be able to run these programs right off the server but remember, any big application such as office/photoshop/cad program/whatever need to be installed and have the proper registry entries and dll's on the local windows installation. What you could do is install programs via MSI to automate the installation process at install to suit your exact needs.
Hope that helps...