Microsoft Office Licensing Question?

I have licenses for 50 users for Office 2003 using Windows XP Pro SP2 workstations. They are "Open Licenses." We are creating a virtual environment on a server utilizing two factor authentication etc. All 50 users will need to Remote Desktop Connect to the server in the virtual environment and utilize Microsoft Office as well there.
Question: Will I need to purchase additional licenses for the 50 users to use Office on their workstations AND the virtual environment or not?

Thank you for your time.

Yes, we are purchasing additional Terminal Server licenses (painfully expensive).
They are all connecting via RDP using the Remote Desktop Connector on Windows XP.

So you think that we won't need to purchase office licenses for the them to use on the remote server?

Legally, you need to purchase a license for EACH INSTALLTION of Office. If your users have a copy of Office physically installed on the workstation, it needs a license. If they are using ALSO using a copy of Office installed in a virtual environment, then you need ANOTHER licesne for that install as well.

If, however, they are using RDP from the workstation to the server, and only using office on the server through the RDP connection, then one license per user will be sufficient.

Incidentally, if you are using Terminal Server, you will probably need licesning for that as well. By default, I believe that only 4 or 5 simultaneous RDP connections are permitted to the server without additional licenses.