No real need to set it up on vista - on xp its within My Computer / Prpoerties /Remote and tick Allow users to connect remotely to this computer but beware it doesnt work with Windows Firewall enabled (or I have certainly never got it working when the firewall was active)
You'll need XP Pro or Vista Business/Enterprise/Ultimate in order to connect onto that machine, as they are the only versions to allow RDP connections. The client comes with all version of XP and Vista - you just wont be able to connect to those machines.
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