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Is it better to virtualize, as completely seperate instances, or to use a Terminal Server type solution?

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Is it better to virtualize, as completely seperate instances, or to use a Terminal Server type solution?

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Virtualizing desktops with seperate VHD instances and Terminal Server type products both allow the centralization of desktops into data centers. However, using individualized VHDs for each user leads to management headaches by having to install apps, patches, and the like, across multiple virtual systems. By contrast, having a Terminal Server setup allows administrators to install apps a single time, and can greatly reduce management hassles. Is the only reason to use seperate VHD instances one of compatibility (i.e. since many apps won’t work with Terminal Server)?

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