Exceed isn't free, it's actually quite pricy (£180 per user license at my last look).
You can use it in either telnet, terminal emulation or "desktop" modes. It is also an FTP server/client, etc, etc, etc. It's a damn good package !
Use the XCDMP broadcast mode to get a full X-windows desktop, but be warned you have to sort out all the network stuff. Depending on your network setup you may need to add the particular host that you are interested in into a file called xcdmp.txt in your exceed\user directory on the MS box. Look at the exceed help files, they give you a fair if not completely clear description or the whats and wherefors(speaking from v6.2 experience).
If you can't get this to display the full desktop you may have to adjust some broadcast setting on the server side (but I've never had to fiddle with this so I can't give you a hint on that, sorry).
Hope this helps some. Ian
"IF" is not a word it's a way of life