Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.
There is not a day goes by where I don't use a virtual machine for development or testing. Same goes for Remote Desktop. I couldn't work without either. However, remoting into a machine - be it real or virtual - means I lose the benefit of having dual monitors. VMWare supports dual monitors I'm told but we use Virtual PC and Virtual Server.
But, never fear, /span is here! Yes, if you launch Remote Desktop aka MSTSC.exe (Terminal Services Client) using the command line switch /span then it will extend the desktop across both monitors. This is not the same as dual monitors - it's really just making 1 really wide desktop - but it's good enough for me. Now I can develop on virtual machines almost as well as real machines.
Oh, and in case you didn't know, you can also use /console to connect to an existing session on a remote machine. This is as close to a real login as you can get. You may also find this necessary when installing software. Some application installs will tell you it cant run when your logged in remotely - /console will bypass this.