Yes it is possible.
Is it possible to create a CD that will simply boot and allow a user to use remote desktop to get into a windows 2003 terminal server?
Yes it is possible.
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Verifying of md5 checksum and burning a CD at slow speed are important.
The Knoppix 4.0.2 CD & DVD and even Damn Small Linux 50MB http://damnsmalllinux.org/ all include a package called rdesktop which can be used to connect to Windows Terminal Servers.

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