If it's W2K Terminal Services, I would say NO because that version can't see
the local drive. W2K3 Terminal services MIGHT be able to do it since you
can point to the local hard drive.
What does the local drive (that's on the client!) has to do with
installing a SP?
Anyway, I would not install SP4, or any SP for that matter, in a TS
session. With SP4 specifically, the server is known to *not* reboot
after installation through a TS session. It finally boots after a
second, cold reboot, but by then you have been forced to get to the
console anyway.
I installed SP4 over Terminal Services to about 4 dozen
servers in remote sites. 4 of them required a second
reboot in order to come back up, performed from the
console by the local support folks. All of the ones that
did not come back up were 2000 Servers running TS in
Application Mode. I had good results installing to Remote
Administration Mode servers. But like they said, SP4 is
quite flaky, and has been known to blow up a few servers.
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