CPU – The server has 2 physical processors, how should I allocate these processors to the two servers?
Remember that a "vCPU" refers to a core of your physical processor. From VMware's point of view, you have eight physical CPUs if both of those have four cores.
- Memory, the server has 30gb ram, again how should I spread this between the two servers and the esxi console
That's a tonne of resources for your two virtual machines. You're probably overthinking the performance requirement. 14GB of RAM is 10GB more than a typical Domain Controller for 30 people will ever use (if it runs no other roles). Personally I would put 24GB on the Terminal Server - RDS seems it can never have too many resources.
- Memory Ballooning, can someone explain if I do anything here, I’ve read it causes issues with Remote desktop services.
As long as you haven't over allocated, such as assigning 20GB RAM to both servers, ballooning should never happen.
- We have configured the server with 1 Raid 5 Logical drive and 1 hotpare, Any issues here?
What's more important is the question, do you have the battery backed write cache on your RAID card? This will have more impact on performance than every question you've asked.
- Different datastores for OS / Apps
You've indicated you have one logical drive, or LUN. This means you are limited to one datastore.
Regardless, separating OS and Apps is just difficult and pointless. If you really wanted to separate something, you should put different VMs on different datastores. But then again, you only have two VMs.
- Passtrough for NIC’s
I can't see why this is useful to you
- Is 2 GB of RAM enough for the host
Yes
- Any known issues deploying Terminal Services RDP on VMWare
Not that it's VMware specific, but Windows 2008 R2 Terminal Services has a tonne of known performance issues that are fixed by "on request" hotfixes. I've seen people throw rediciulous amounts of hardware at a problem that was solved by applying one of these. If you view this Citrix link, there's a section for "Microsoft Hotfixes". If you start by installing Service Pack 1, you will only need the ones listed as "not included in SP1".
http://support.citrix.com/article/CTX129229