Windows Home Server isn't designed to be used as either a desktop computer or a Terminal Services host, so you shouldn't install Office. In addition, using it as a Terminal Services host for desktop applications is likely to be a violation of the EULA, which prohibits activating server roles that aren't active by default.
I'm going to suggest that you read the documentation available
here, at least the documents under "Help and howto". They should give you a somewhat better picture of what Windows Home server
is designed to be.
I'm not on the WHS team, I just post a lot. :)