I have personally implemented terminal server development and it is no slower than a fat client connection. In fact, it is usually a better solution than multiple fat clients with remote control software. The big caveat here is that PSFT does not "support" this solution. All that means, though, is if you call in with development issues, you tell them you are on a fat client, if they even ask.
Follow ALTQUARK's guidline, and you should have no problems.
Regards,