I think if I explain the setup I have now your advice will help me more.

I have one computer room with 25 computers running windows 98 as a
method of connecting to a windows 2003 terminal server (whichis also the
main server (DHCP and general connecting to a domain). There is another
windows 2000 server which serves as a file server. We don't have or need
exchange. The windows 98 is ONLY used as the "desktop" to connect to the
terminal server via remote connection. The 2003 server has 4 giga memory
and when connected to works well at providing Office and internet for
the client computers.

There are two problems that we have and they both relate to the clients.
The one is the start up time of the windows 98 and the other is the
login time to the terminal server. Once there everything works ok.

I was thinking to change the client computers to linux as "thin clients"
and in that way connecting to the terminal sever. I hope my explanation
helps.