Evan,

>Same server. I can't see needing two. This is mainly a dept app that other depts will do occasional queries to.

So how will you debug and enhance the app after it goes live without a separate development server? Or are you confident that once released there will be no problems or need for updates? And don't you want to end up with a nice fast n-tier development machine permanently in your office? :-)

>Ah yes, we are considered a university. It should be really cheap. VS Enterprise cost approx $300US (as an example).

So show them retail prices, then how much you are saving, and put the extra into your separate dev machine.