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With the release of Vista to business consumers, Microsoft has decided to release the Remote Desktop updates (a.k.a. Terminal Services Client) through Windows Update. This update is available to XP users under the “Optional” updates, and is KB925876. This update removes at least most of the limitations upon display size.
Why would you want this update? Besides the security and performance improvements, if you want to simulate Dual monitors (or just drive one huge monitor), you can do that with this update.

But then you would need to found out how to install RDP Client v6.0 without the installation package on a XP machine. You may download the install pack I downloaded from somewhere, but to sum up here are the steps:

• Create a folder for you RDP 6.0 files (don’t place them in System32)
• Copy the files mstsc.exe and mstscax.dll from a Vista installs System32 folder to the new folder.
• Create a subfolder, en-US.
• Copy the files mstsc.exe.mui and mstscax.dll.mui from the Vista installs System32\en-US folder to the subfolder.

This will get you the new client. You will still need to manually edit your RDP file to set the resolution you want. Normally you’ll find a default.rdp file in your My Documents folder, which is easily editable with Notepad.
It still does not support actual separate desktops (meaning that all Windows will maximize to both monitors, rather than just one using the /span command line option), so you need to grab a third party tool for that, which as of yet I have not found. Anyone have a suggestion? I am pretty sure I read about one a couple months back, but not having solved the first problem, didn’t really take enough note, and now I can’t find it.