The linked white paper at the bottom of this tip is a usage guide for IT professionals who are new to Terminal Services and/or its' Remote Administration mode.
There are two modes to choose from when enabling Terminal Services. Application Server mode is similar to the Windows NT® Server 4.0, Terminal Server Edition. It is designed to supply multiple users with Windows-based applications run from a server.
Remote administration mode allows two (2) concurrent Administrator connections, without installing a license on the client.
When run in Remote administration mode, Terminal Services does NOT implement any changes to CPU and memory utilization, and does NOT implement any application compatibility settings.
The Terminal Services component of Windows 2000 Server is tightly integrated into the kernel. It only requires about 2 MB of server memory and has minimal impact on server performance.
Microsoft recommends enabling Terminal Services in Remote Administration mode on every Windows 2000 Server.