Thin Clients Network

Hello we are moving our offices into one big office and my boss doesnt want to buy more computers she wants us to work with Thin Clients. She just wants a Keyboard, mouse and Monitor and thats it. I dont know allot about this kind of setup. She is trying to keep the IT cost down, does anyone know anything about this kind of a network??

Is it slow or cost effective. Will it work with SQL Server 2005 and Reporting Services??? do we need to change the way users log onto the database?? .