Question: So we are venturing out into the world of SharePoint and it seems that I have to install SharePoint Server directly on each developer's box. Is this correct? I have SharePoint up and running on a separate sever so it seems redundant to have to install it on each box. Not to mention installing SharePoint on Windows 7 is a pain in the ars. I'm just trying to clarify how to correctly set the environment up. I've been using this link as a guide so far: <http://msdn.microsoft.com/en-us/library/ee554869(office.14).aspx> Any advice is greatly appreciated!

Answer: 
No you don't need to install sharepoint on every box, just VS and the SDK. You should have a separate dev instance for them to connect to, but that should be a real server not a win7 desktop. 

So you should have 

1 Server with sharepoint 2010

N Dev workstations that have VS2010 and the SDK installed.
Here is couple practical tips for setting up SharePoint 2010 development environment:

[SharePoint 2010 Team Development Environment](https://learn.microsoft.com/en-us/archive/blogs/vesku/sharepoint-2010-team-development-environment) by Vesa Juvonen

[SharePoint 2010 Development Environment Practical Tips](https://web.archive.org/web/20170907142205/http://blah.winsmarts.com/2009-11-SharePoint_2010_Development_Environment_-and-ndash;_Practical_Tips.aspx) by Sahil Malik