I have been using this for a while with no problems. just a few notes.
The Terminal services manager no longer lists the console as console
For me RealVNC server does not work after using remote desktop (Ultravnc works though). This can be a problem if others are still using VNC.

You can set up a link to the session by saving the settings in in a RDP file and then creating a shortcut mstsc.exe

%windir%\system32\mstsc.exe /console "C:\..path..\filename.rdp"

a very useful app is portmapper from analogx to redirect ip traffic to a different computer/port if need be
http://www.analogx.com/contents/download/network/pmapper.htm

You can set the RDP client to use the non-standard port by using the syntax Computer:port in the computer field of the RDP settings


>Finally! I've been trying to find this for years. For an application that I develop and manage, I need to have console access to the server to run the app. I've been using PCAnywhere and VNC which work perfectly well, but was starting to get push back from corporate system admins who didn't want to open the VNC and PCAnywhere ports. As of today, one of the admins simply refused to open any port except 3389 (remote desktop). Googling I manage to find a switch for remote desktop that forces the session to be a console session instead of a virtual session. The command line is mstsc /console
>
>So basically I start the server app, and it runs 24/7. Periodically I will sign in to the same sessiona and check for any errors or do a custom query.
>
>Anyone had any problems running an application logged in with terminal services in this way vs VNC/PCAnywhere?
>
>BTW, here is the link to the solution creating http://firechewy.com/blog/archive/2005/10/18/926.aspx