Wayne
Thanks for your input. I was thinking that you could use the clustering for both, performance and failover. That really is more of a question. Our client is looking for our hardware recommendation for this and not the cost issue. I just tallied up 900 TS-CAL and they were about 62K...that's a lot. I can't imagine 900 simitatious users, but there specs were 30 facilities with 30 users each.
With the sql server portion I was under the impression (I may very well be wrong here) that you can cluster SQL 2000 machines to provide automatic fail-over.
Kirk