2003 server in workgroup mode, and Terminal server running

Hi,

We are setting up a standalone windows 2003 server, to be
used in a workgroup or domain mode that will also be a
terminal server in application server mode. This will
have 3 users accessing the server to use a point of sale
product and no local users on the domain or workgroup.
Can someone direct me to a great best practice for
setting up Terminal server in Application mode for
Windows 2003 standalone server.

Also can I install the licensing server on this
server...all clients accessing are Windows xp clients.

Thanks for your time everyone...

Steven