Hi,
| Is the recording suppose to happen on MASTER? |
You can record on any PC. It is senseless to talk about Network Suite until you try to run your test - it is not involved in recording.
| What if the SLAVES are running on different versions of XP and the MASTER is runnig on Windows7? |
Your test will work.
| What if the the TC is installed on my lap top and the client machine that the recording needs to take place from is another client accessed by RDP |
You should run recording on the machine where your application is running. You cannot record anything via RD except for coordinated clicks on the RD window.