this question targets probably more the Microsoft Guys than than vCampus - so let us see what the community may have to add.
I personally prefer my own little sandbox (like your developers ). Microsoft had a VHD available - but unfortunately this had a timeout in September. From the requirements you are pretty complete (just missing the extensions for Visual Studio VSeWSS I guess).
There are couple of blogs around that describe developing web parts remotely, but all seem to say that the remote debugging is a pain.
Microsoft will be able to tell you more about the licensing - but for me it looks like the only difference would be the OS on your developer's machines.
Hi Thanks for your input, I have been researching this for the last two months and 90% of the answers I find point to that you either develop directly on the server or create your own personal server with all the licensing overhead and either a virtual machine, dual boot, or extra hardware, (all of which is getting harder and harder to justify to upper management), it would be nice to have a Sharepoint Development Environment on XP (Desktop) .I just thought I would pop the question here to mostly confirm my research.
Yeah, I preffer to have my sandbox too! (and I have, a VM with that specifications)
I do have VisualStudio 2008, SQL Server 2008, Windows Server 2008 and the latest and gratest Visual Studio Windows Share Point Services Addon.And having a lot of free space on that drive to take snapshots is one of my favorite things, so you can go back in time to before you broke ... tested something.