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In an email from Microsoft, they mentioned a new product in beta.

"Microsoft Windows Thin PC (WinTPC) enables customers to repurpose 
existing PCs as thin clients by providing a smaller footprint, locked 
down version of Windows 7. This provides organizations with significant 
benefits: ..."

Web link: 
http://www.microsoft.com/windows/enterprise/solutions/virtualization/products/thinpc.aspx

Don't know that I'll be signing up for the beta, but would like to hear 
from anyone who tries this out.
Sigurd