Both Windows Clustering and Terminal Services can coexist on the same server. However, there are several factors to consider when you install Terminal Services on a server cluster. Server clustering does not fail over the information that is held in the local nodes memory (the random access memory [RAM]). In the event of a failover, all of this information memory is lost. This memory loss includes the Remote Desktop Connections from the client computers. You cannot fail over Terminal server sessions or their connections.
Even though Server Clustering and Terminal Services can coexist on the same server or node, they cannot be combined to expand the capability of your Terminal server to a high availability failover solution, because they are unaware of each other. In Windows 2000, you can install Terminal Services only in Remote Administrative mode on a server that has the Cluster service installed.
Note Terminal server Remote Administration mode permits a maximum of 2 connections.