Microsoft Knowledge Base Article 309825 contains the following summary:
When you use Windows 2000 Terminal Services, you can run your own dedicated sessions on a Terminal server. You can run the Terminal Services client software to connect to Terminal servers and to run line-of-business programs. If you are an administrator, you can use Terminal Services to manage remote computers more easily. This article describes how to securely copy and paste files between the Terminal Services client computer and Terminal server.