Stewd, havent been on here in forever, just now saw your reply.
What specifically did you want me to elaborate on?
This hack seems to grab the Terminal Server DLL from Server 2003 or some XP pre-release that used a DLL very similar to Server 2003.
Server 2003 supports 3 sessions as someone mentioned previously.
2 Remote sessions and 1 "Console" session.
When you look at Task Manager or use the QWINSTA / Query commands you will see a ID or Session ID. That represents which session your using. The 2 remote sessions will simple be 1 and 2. The "Console" session will always be 0. When you try to connect to a remote session and there are already 2 connected, you will get an error regarding not enough open sessions left or something. However when you connect to the console session, you will displace the user on the console and the console monitor will appear as if someone locked it.
It looks as if the TSCON command mentioned previously forces the Console (the real Monitor or TV) to resume control of Session 0. This is because when you "Disconnect" from session 0 remotely, it leaves all the stuff running but also leaves the remote screen locked. I would guess that TSCON command somehow bypasses that locking and simply puts the screen back to the console. If you "Logoff" from the console session (0), the actual console (Monitor/TV) will go back to the login prompt.
Anyway if you have more speific questions Stewd lemme know.
PS: There is another hack I have seen and tried (on VMWare only) that allows you to turn XP Pro or even Server 2003 into a MCE machine. I think I found a novice mode version that was a Torrent file somewhere as well that did half the work for you. So rather than turning your MCE machine into a 2003 Terminal Server, you could actually consider doing the opposite, turning your 2003 Server into a MCE machine :). Not sure what other features of 2003 server you would actually use, but its nice to know its possible. I guess the whole Domain vs Workgroup thing would be worth it in itself.
stewd:Casper tried your suggestion, but no joy, can you expand slightly on your explanation?