Terminal Services Server Question

Ok, this sounds easy but im somewhat confused.
How should you configure performance options for a terminal services server? optimize for application or background? i have the ff observations:

background - you don't access the service locally on the console but through a remote connection, which means the service is operating on the background.

application - each terminal services client run applications "as if" they are run locally and these applications (ms office applications) are run not as background services.

i am somewhat confused, which of the ff performance option would benefit the terminal services client more?

thanks.