Is Terminal server the best solution?

I currently have 28 IBM Eduquest machines running Novell 3.12 and ICLASS. My local vendor is suggesting we purchase a terminal server to make these machines act like newer machines. I know what we have is outdated, but is this a realistic solutionto bring this lab up to the 21st century. We want to be able to effectively use the internet, Office 97, and several other educational titles. How many titles am I realisticly limited to? How fast of “machine” can I expect if we put in a dual Pentium 700Mhz packed with RAM?