If I'm installing software that the minimum specs are 1gig of memory and a 32mb vid card on a remote machine (and that machine has those specs), but the computer which is accessing the remote machine and controling the software doesn't have those specs - will it work?
I'm certain the memory isn't an issue. But what about the video card?
In that case the client machine (the one accessing the remote PC) shouldn't have to be near as powerful as the specs you gave in your first post. The client is part of XP, so if your machine is running XP you're fine. There are also client versions for 98, ME, NT and 2000.
The processing for your new software will be done on the remote machine, so the only real issue will be the speed of the connection on your intranet.