Does Terminal Services work on a Windows 2003 Server that has not yet been configured as a Domain Controller?

I have a client that wants to hold off on the Domain Controller setup to save time in getting a new office setup and running. Will terminal services run on a Windows 2003 Server that is not setup as a domain controller.

When I try to add the terminal service licenses it says

"No Terminal Server license server is available in the current domain or workgroup. To connect to another license server, click Action, click Connect, and then type the server name. "

Please help!!

Thank You.
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rhinocerosConnect With a Mentor Commented:
>Will terminal services run on a Windows 2003 Server that is not setup as a domain controller.
Yes, it's ok.

In case, you should install terminal services on domain Member server not domain controller. Because it will have large loading between servers and clients. On the other hand, you must build up new terminal license sever for Windows 2003 terminal server running.

More information
you will probably need to enable remote desktop or setup the server as a terminal server, press windows key + pause break and bring up system control panel - on the remote tab tick allow users to connect to this computer remotely
Did you install the terminal services license server?   you need to add both terminal services and the license server. I believe you should be able to run a terminal server without it being a member of a domain, but it will definately be easier to administer if it were a member of a domain.  By default an AD domain controler will require policy modification to allow non administrative users access into the terminal server session.  By default a domain controller is configured such that only administrators can log in either on the console and possibly via terminal services.
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Yes, you can install Terminal services on any win server 2003 which is a member of domain, you need to install remote desktop connection (MSRDPCLI.exe) from win xp CD (xp has it inbuilt) on all the clients. also you neeed to add users to terminal services users group or remote desktop users group to get access to the terminal server.
itech-solAuthor Commented:
Let me clarify.

There is NO domain controller setup on the network. There is only ONE server on the network which has not been setup as a domain controller (Active Directory) yet.

I have already installed Terminal Services, and have already enabled remote access to the server. I have also successfully connected remotely, however there is a problem installing the terminal services license. Terminal services is currently installed, and working, however does not have any licenses installed because of the error described above when trying to look for a terminal server to add licenses to.

The above links will show how to install Windows 2003 licensing server if you have.
itech-solAuthor Commented:
rhinoceros gets the points... I thought I had already installed the Terminal server licensing... Thanks!!!
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