...client(i.e-not Using Its Processor/memory) With Minimum Setup?

well, a thin client requires at least a processor, ram, and a videocard...without them, the motherboard within your thin client won't even boot up. the hard drive from a main computer (example server) can be used as the storage for your thin client (network card needed) if you want to use the server's resources etc. all depends on the operating system you choose. if you just want to use the thin client by itself, you would need an operating system that loads onto virtual memory.

lookup pxes thin client