optimized terminal server

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    i have this terminal server:

    cpu: 3GH
    ram: 2G

    i have 12 users on this sever all working on a web application.
    sometime the load on the cpu is high and users complain thet server
    is slow other times i see in task manager that specific users take
    very large amount of ram much more then others and those users
    also have very big folder here > C:Documents and SettingsDAVIDLocal SettingsTemporary Internet FilesContent.IE5

    yet in task manager i see that the server use only 70% of the ram at
    the most.

    what are microsoft recomandations about how many users should log in
    to one server?

    what services should i disable and what more can be done to optimize
    the server?

    is there any way to delete all cach files for each and every user when
    they log off (content.ie5) ? ( 3 party app ? ).

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