Hi,
I've tried this on a Wyse XPe device and a smart board using the cutdown version of the Smart software (the one designed to run from a USB stick).
It did work but was a little strange if you logged onto a remote machine as the smart notebook was running remotely even though the board was running on the XPe device. It would be a better experience I think if I'd used published apps.
In the end I opted for fat clients for the IWB just due to the flexility of wanting video, other devices such as voting etc - the risk of the terminal is that these may not quite work as expected.
Neil