W2K terminal server and client modems

I am investigating the option of using Windows terminal server to replace some of out lower end single purpose clients and was wondering about setting up an autodialer feature. The software we run on the clients needs to be able to dial out on a phone line attached to that station. Is it possible with terminal servers to either
A: Install a modem bank in or near the server and tie one modem to each station or
B: Install a modem in each client and allow the terminal session access to that modem?
Thanks for the help.