Illegal, according to the Windows 7 EULA:

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2. c. Number of Users. Unless otherwise provided in these license terms, only one user may use the software at a time.


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3. a. Multiplexing ... does not reduce the number of licenses you need.


Section 3. f. allows up to 20 file/print/IIS/ICS/Telephony connections.

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3. g. Remote Access Technologies. You may access and use the software installed on the licensed computer remotely from another device using remote access technologies as follows.
· Remote Desktop. The single primary user of the licensed computer may access a session from any other device using Remote Desktop or similar technologies. A “session” means the experience of interacting with the software, directly or indirectly, through any combination of input, output and display peripherals. Other users may access a session from any device using these technologies, if the remote device is separately licensed to run the software.

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-- roger