This doesn't matter for an implementation of your size, but the biggest reason not to run TS on a DC is because of the changes that need to be made to the Default Domain Controllers Security Policy to allow users to logon locally to the DC.  This affects all DCs in the domain, so deploying TS on a DC in an environment where there is any other choice is a bad idea

Shouldn't be a problem with such a small office and this change won't affect any other DCs, since you don't have any.

Terminal Server how tos here
http://www.workthin.com/tshta.ht

Patrick Rous
Microsoft MVP - Terminal Serve
http://www.workthin.co
   
    ----- Jason wrote: ----
   
    The documentation says that running WTS application mode
    on the PDC is not a good idea because of performance
    issues. As I have only a tiny (<5) amount of users, I am
    tempted to run the WTS in application mode on the PDC.
   
    Other than the performance concerns, are there any
    specific technical issues/incompatibility that I should be
    aware of?
   
    Thanks in advance