Terminal Server Licensing Trouble

I am hoping someone will be able to help me with this problem I am having with Terminal Server 2000.

I am very confused about the whole Terminal Server Licensing.  I have heard that if you are using Windows 2000 Pro, the terminal license is already there and you don't need to buy more licenses for these machines to access and to use the Terminal Server.  Others have said that you need to spend $1000 of more dollars to buy licenses for these machines to access and use the Terminal Server.  If anyone can clear this up it would be great.

Also...   We have a Windows Terminal Server 2000 and it was running fine in a Windows NT4 Domain.  It didn't need more Terminal Server Licenses.  Now that I have upgraded to Windows 2000 Server with AD.  It is saying that I need to activate the Terminal Services License Server and buy more.  I have 8 days left until the trial licenses run out and I need this mess that I have created to be cleaned up.  what do I need to do?  I don't really want the company to use more money.

Please help and thank you to all.
dtmillsIT ProfessionalAsked:
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oBdACommented:
If you're using Windows 2000 Terminal Services and W2k/XP clients, you don't need to buy TS CALs:
====8<----[Licensing Technology White Paper]----
Supported Licenses
[...]
* Terminal Services Client Access licenses (TS CALs). These licenses are purchased for known devices that connect to a terminal server. Devices running Windows 2000 Professional or its successors (i.e. Windows XP Professional) do not require a TS CAL to connect to a Windows 2000-based terminal server.
* Built-in licenses. Clients that are running Windows 2000 Professional or its successor operating system(s) are issued a token from the built-in pool of license tokens.
====8<----[Licensing Technology White Paper]----
To activate the license server, if in doubt use the "telephone" method from the "How to" article above, tell them that you only want to activate the server, and ask them what information to provide.
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adonis1976Commented:
no it is not free. the trial runs for 90 days and then you will have to buy.

here is a link describing that issue:

http://support.microsoft.com/default.aspx?scid=kb;en-us;291807&Product=win2000

here is a white paper on it:

http://support.microsoft.com/default.aspx?scid=kb;en-us;294716&Product=win2000
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oBdACommented:
If your clients are indeed W2k or XP, and you're running Windows 2000 Terminal Services, you do NOT need to buy additional TS-CALs. You still need to setup and activate a license server, though; in a W2k AD this needs to run on a domain controller (Add/Remove Windows Components in Control Panel\Software).
They changed that back in Terminal Services on Server 2003; now you need TS-CALs for every client OS accessing terminal services.

Licenses Required When Using Terminal Services Client Software
http://support.microsoft.com/?kbid=244749

Windows 2000 Terminal Services Requires Licensing Service
http://support.microsoft.com/?kbid=237801

Windows 2000 Terminal Services Issues in an Active Directory Domain Environment
http://support.microsoft.com/?kbid=250776

HOW TO: Activate a License Server by Using Terminal Services Licensing in Windows 2000
http://support.microsoft.com/?kbid=306622

Microsoft Windows 2000 Terminal Services Licensing
http://www.microsoft.com/windows2000/techinfo/howitworks/terminal/tslicensing.asp

Windows 2000 Terminal Services - Pricing & Licensing
http://www.microsoft.com/windows2000/technologies/terminal/default.asp#section7
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dtmillsIT ProfessionalAuthor Commented:
So How is the activation of the licensing server done?  I have rang up Microsoft and they say I need to purchase new licenses and supply them with a CLIENT LICENSE KEY PACK ID code that I have never received and I was under the impression that the licenses that are needed to access TS are on W2K Pro already.  Can you clear this up for me by explaining what I am missing please?  Thank you all
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