I am going through the terminal services help topics on our Windows 2003 Server. As I read it I come across a line that states that we should setup a Terminal Server License Server on another server than the one that is the Terminal Server. I don't see a reason why. Is there a huge impact on the server or are there some connectivity issues having the license server on the same box? This company is not a huge company. What will happen if I try to setup the Terminal Server License Server on the same server. If there are major issues what alternatives? Could I use a Windows XP workstation as a licensing server?