Terminal Services Event ID: 1010 The terminal Services could not locate a license server.

Hello,
I am running a 2000 server that is my DC and has Terminal Services and Terminal Services Licensing installed. I am running another 2000 server that is my metaframe xp server and is also a terminal server. Inside the network when I connect to the DC through the terminal services client connection mgr. I have no problem I am able to connect. When I try to connect to the terminal server (citrix installed) I cannot connect, I have to connect to terminal licensing servera (DC) first then I am able to connect to the citrix server. I get this error message in the event log of the citrix server Termservice eventid 1010 [The terminal services could not locate a license server]. What could cause the citrix server from communicating with the terminal license server? As I said once I connect to the term lic. server and disconnect I am able to connect to the other server(the term lic. server issued a lic.) but if i do not connect to the term lic. server first I am not able to connect the other server (after I connect initially I am able to connect to either server without problems).  What do you think?