Citrix and MATLAB

I have a windows 2000 server running Citrix Metaframe which is our
termserver, serving 20 thin clients. There are no PC's on the network and the
network is private.
We have installed a new server running IIS and MATLAB. I have 15 licenses
for my MATLAB users. To get MATLAB working I had to share out the MATLAB
directory where the MATLAB executable resides. This works ok when I map a
drive from the termserver to the new server where MATLAB resides. Mathworks
said this is how we should do this but it doesn't make sense to me. Doesn't
seem secure either... Also MATLAB runs fine from the server but is very slow
loading to the thin clients.
Do I need to run Terminal Services on my new server to better run MATLAB?
Out IT folks said we should install MATLAB on the termserver but it would
probably cripple the machine once 4 or 5 users started running MATLAB.

Any thoughts on this?

Thanks!!