Thank you, Wendell
This appears to be a similar solution as another product that I am reviewing -
http://www.tsplus.org/ which makes use of Remote Desktop. This one related to Windows Home Server seems to not require separate CAL's, although Sandeep, if I understand him correctly, seems to feel that there could still be a EULA issue, in spite of claims to the contrary, although not likely to be enforced.
I agree that this would likely be easier and less expensive than the virtualization route. Thank you for the suggestion.