Yes, it does. I currently do this.
To make this easier I recomend....
1) You do some registry tweaks to allow multiple concurrent users to login to the MC PC and also allow for a blank password (may want to consider the security impact on this and also may need changes to other PC's on your network if they use Windows 7/Vista to allow sharing with a PC that has a blank password - for me the convenience is absolutelty worth it).
2) Create an icon on the desktop of the MC PC which you'll click to log off the remote session. This icon runs a logoff command has a special command switch/parameter that returns screen control to the MC PC without it "defaulting" to the user login screen.
Edit: this is the command I have assigned to an icon on my Media PC to logoff..."%windir%\System32\tscon.exe 0 /dest:console" and under windows 7 I think it is slightly different "tscon.exe 1 /dest:console ".
That way, you can just remote desktop in and out with minimal fuss.
I'll see if I can find a post on the web that describes how to do this....otherwise Google is your friend.