2 KB, 2 windows/monitors, 2 people, 1 PC

[Maxion]

In general, No, you cannot use a single PC in that way like it was two, I remember answering this question a couple years back as well.
The only exception might be if you were running linux, where i think such feats may be possible.

[zenga]

The only exception might be if you were running linux, where i think such feats may be possible.

correct. you basically want to make a 'terminal' of your linux machine. There is a ton of info out there about settings, what connectors to use, etc ... Each person connected has basically its own 'instance' of the OS and obviously his own input devices / screen. You can play many/most games on linux with wine (or solutions like crossover or cedega). It's not the most straightforward project if you have zero experience with linux, however if you are computer savvy enough, it's not rocket science either.

[EaTCarbS]

correct. you basically want to make a 'terminal' of your linux machine. There is a ton of info out there about settings, what connectors to use, etc ... Each person connected has basically its own 'instance' of the OS and obviously his own input devices / screen. You can play many/most games on linux with wine (or solutions like crossover or cedega). It's not the most straightforward project if you have zero experience with linux, however if you are computer savvy enough, it's not rocket science either.

A lot of schools are starting to run setups like this. Its horrid for doing anything other that running MSword.

OP would save a lot of trouble and hassle by just getting another machine