Deciding which way to go - terminal server or client/server??

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Hello everyone:
we are a small company with 15 users/ desktops - one p3 and rest p4 2.2

- all with 256 mb ram and 40/80 gb hdd - single location - on a
workgroup with one xp pro and rest xp home machines. v were ok till we
upgrade our accounting software to peachtree quantum 2007 which is our
main application which has runtime sql server database. new peachtree
slows down our system to a good extent but still works :)
we have been adviced to go for new server with 4 gb ram and raid 5 with

3 hard disk - install windows 2003 and terminal server - so that v just

have to buy terminal server licenses for users and not to invest in
upgrading from xp home to pro and 256 mb ram to 512 or a gig on all pc.

our main concern is we need to know the experience of someone with
similar setup and also how much difference it will make in speed and
maintenance? are there any technical issues?
we thank you in advance for your feedback.
Mike.

.



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