I have installed Office XP on a Windows 2000 server running Citrix XP. That server is obviously installed in application mode for terminal services.
Here are some tips:
Create a custom .mst for your install. You will need to download the Office Resource Kit for Office XP and create your own customized installation file. This way, you will be able to control what features you will install on the server. The next thing is try to create policies via poledit or OU's in AD. This way you canrestrict the desktop and change the "My documents" path on the desktop. There are alot more tips I can put on here but if you go to www.tek-tips.com and search for Citrix and there will be a bunch of topics.
Thanks.