Alse see type1inst at sunsite. Wabi comes with its own fontserver which acts as a normal X11 fontserver but which in addition supplies more information to Wabi. 32bpp should also work well. Yes, it works nicely. Wine thus acts as a Windows application server which, coupled with any X display, forms a complete thin Windows client solution.
Mucho bandwidth is required, of course, as for any remote display system.
This is useful for reverse engineering hardware protocols, among other things. Some SCSI scanners are supported through aspi.