Windows 2003 terminal Server Per device Licence


We are having Terminal Server 2003 Configured on Perdevice mode with more than 500 users running more an yearwith out any problem .. Recently we are getting error " The terminal server client "PC NAME" has been disconnected because its license could not be renewed.

Its already started for 4 users .. i am afraid it wil increase and disconnect one by one.

from client if we delete the MSlicensing key it reconnects its workd fine

whats this error and how can i rectify this...
Since we have lot of users  can we have any other licence mode ..

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Microsoft still would require you to have 500 licenses.  Seeing how that any of the 500 users might establish a TS session from time to time.

Functional answer is 20.  If you only have 20 users connecting, TS will accept up to 20 concurrent connections at any one time if you have 20 licenses.
I would investigate using PER USER mode.  PER USER Mode does not put a license in the registry of the client.  Unless, you have multiple people using the same client machine, PER USER mode might be a better choice for your environment.

More information about PER USER mode can be found here:

I would suspect that maybe you are having a problem with your license server.  Check the license server to verify that the server is online and that no problems can be found in event viewer.

The question is why could your license server NOT issue a new license?  Is this out of available licenses?
GEMINI-INDIAAuthor Commented:
Presently I am Using Perdevice mode.. We have total of 500+ Users.  Cuncurrent users will be less than 20 at a time .. if i am going to change to  Per user Mode how much Licence should I have .. Please suggest me as soon as possible.
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