(Licensing Issues) - Windows 2000 server terminal services in an 2003 domain.

We have a 2000 terminal server that a lot of remote users connect to in the domain.  Our domain controller is a 2003 SBS box.  For quite a while users have had no issues connecting to our 2000 terminal server.  Just recently new users have been complaining that the terminal services session is denied.  The server event log shows an event ID: 1004 - "The terminal server cannot issue a client license."  Also, opening the terminal services license manager on the 2000 box results in "No Terminal Services license server is available in the current domain or workgroup..."  Is it an incompatibility between 2003 and 2000 TS licensing?  Has anyone experienced this before and do they know of any resolution that could help?

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