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Configuring terminal server in Server 2003

Running Win Server 2003 R2 w/ SP2. I'm a bit confused about installing terminal server. I have 14 per user licenses that I just installed and I activated it. When i go into terminal server licensing, I see my license. It says Total: 14    Available: 14        Issued: Not Available                    

I know people are logging in through terminal server, but it seems as though no one is being issued a license. I did the necessary group policies. I read about changing to application mode, but it seems that is only in Server 2000. Can someone explain what I haven't done? Thanks in advance.

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2 Solutions
Pete LongConsultantCommented:
Hello fina27,

Installing Terminal Services

It?s a three Step Process

1.      Install Terminal Server Licence Server
2.      Install Terminal Services
3.      Configure Applications/Group and Users

*****Step 1 Install Terminal Server Licensing*****

If you require full terminal server functionality beyond the basic two administrative sessions to a server, you must install the Windows 2003 Terminal Services Licensing service on a server in the environment before the 120-day grace period expires. After 120 days, users will no longer be able to connect to the terminal server
In small environments, both the terminal server and the terminal server licensing server can be the same box, but for larger environments, this isn't advised. Windows 2003 terminal servers must communicate with a Windows 2003 licensing server; a Windows 2000 licensing server isn't suitable.
You can use any machine to host the Terminal Services Licensing service because the overhead involved is minimal. The service uses only 10MB of memory and increments by only 5MB for each additional 6000 licenses added. In the case of a domain/workgroup terminal server licensing server, installing on a domain controller (DC) helps the terminal servers locate the licensing server. To install the Terminal Services Licensing service, perform the following steps:

1.      Start the Add or Remove Programs Control Panel applet (Start - Settings - Control Panel - Add or Remove Programs).
2.      Click the Add/Remove Windows Components button.
3.      Select the "Terminal Server Licensing" check box, as http://www.windowsitpro.com/articles/images/termservlicserv1.jpg  shows, and click Next.
4.      You'll be prompted to enter the scope of the licensing server, enterprise, or domain/workgroup, as http://www.windowsitpro.com/articles/images/termservlicserv2.jpg shows. An enterprise licensing server will service any terminal server in the local Active Directory (AD) site, even from other domains (although the terminal servers must be a member of a domain and not a workgroup, and those domains must trust the domain that has the licensing server). A domain/workgroup licensing server will service only terminal servers from its local domain/workgroup but will service terminal servers in that domain from any site.
5.      Click Finish.

Next, start the Microsoft Management Server (MMC) Terminal Server Licensing snap-in (Start - Programs - Administrative Tools - Terminal Server Licensing). The local server will show as "Not activated." Right-click the server and select Activate, which will initiate the License Server Activation Wizard.

1.      Click Next to the wizard's welcome page.
2.      You'll be prompted to select the activation method. The options are Automatic connection, Web Browser, or Telephone. In this example, we'll select Automatic connection, as http://www.windowsitpro.com/articles/images/termservact1.jpg shows. Click Next. Whichever method that you select will facilitate the connection to the Microsoft License Clearinghouse, allowing license server activation.
3.      Enter the company name and contact information, then click Next.
4.      You can add optional information such as email address and physical address. Click Next.
5.      You'll see a dialog box confirming activation, and by default, the licensing wizard will start when you click Next

After the licensing service is installed for an enterprise server, a record is written to the sites container in the form of a TS-Enterprise-License-Server object, http://www.windowsitpro.com/articles/images/termservlicldap.jpg  The siteServer attribute identifies the name of the license server.

That?s the Licence Server Installed Now you need to add the Licences

1.      Right Click the Server-name > Install Licences
2.      Next > Select the correct Licence Program (If its eOpen Select Open Licence).
3.      Next > Type in the Authorisation number and Licence Number.
4.      Follow the onscreen prompts till finish.

***** Step 2 install Terminal Services*****

1.      Start > Control Panel > Add/Remove Programs
2.      Add Remove Windows Components
3.      Scroll Down And tick ?Terminal Server?
4.      You may see a pop up warning you about the Internet Explorer advanced security Configuration ? to be on the safe side remove it in a minute > Click Yes
5.      Click Next
6.      You will get a standard warning to say it will only run for 120 days without you installing a Terminal Service Licensing server (with valid licenses on it)
7.      Click Next
8.      If you need to share applications that will write to the registry etc select ?relaxed Security?
9.      If you already have a license server already select it, If not select ?I will specify a License server within 120 days?
10.      Click Next
11.      Select Per Device or Per user (check your CALS)
12.      Click Next.
13.      Windows will now install Terminal Services.
14.      When Done Click Finish > Click Yes and allow to reboot.

*****Step 3 Set up the Applications and Users*****

Set up the applications

Note: You cannot install from a network location if that is required copy the setup files to the Server and install that way

1.      Start > Control Panel > Add Remove Programs > Add New Programs.
2.      CD or Floppy > Navigate to the setup.exe or install files
3.      A Window will appear asking you to close it when you have finished (Leave it alone)
4.      Install the application as normal
5.      Click Finish on the window that popped up in step 3 above.

Set up a Group

1.      Create a Group called TS_Users (Yes Windows has inbuilt groups but t I prefer to do things manually.
2.      Add the domain TS_Users group to the Terminal servers Local ?Remote Desktop Users? Group.
3.      Start > Run > Gpedit.msc {enter}
4.      Navigate to > Computer Configuration > Windows Settings > Security Settings > Local Policies > User Rights Assignments  > Grant the following two to the TS_User Group
a.      Allow Log on Locally
b.      Allow Log on through Terminal Services
5.      You don?t need o do the following but I do it for ?Belt and Braces? Click Start -> Programs -> Administrative Tools -> Terminal Services Configuration.
6.      Double-click the Connections folder, and  right click Rdp-Tcp.
7.      Properties > Permissions > Add > Add in the TS_Users Group > OK
8.      Grant ?User Access? > Apply > OK

Setup the Users

1.      On a domain controller Start > Run > Dsa.msc {enter}
2.      Add the User to the TS_Users group you created above.
3.      On each user Locate their ?Terminal services Profile? Tab and create an area fo their Terminal Services profile on the Terminal services server (or within their roving profile)
4.      You may also want to connect their home drive etc on this tab.

References http://www.windowsitpro.com/Article/ArticleID/49867/49867.html


Everything is normal since the server is not able to recognize and assign the licenses to users but to be legal, you need to have as much user licenses as the number of users connecting to the Terminal Server. If you had bought Device CALS, you would see the licenses assigned to the differents machines connecting to the TS.
Got this from Microsoft Terminal Server Licensing document available here:

On Page 11

Client License Distribution Per User
When a terminal server is configured in Per User mode, the terminal server must be able to locate a license server after the grace period has expired. While it is possible to install TS Per User CAL tokens on a license server, there is currently no method of assigning a TS Per User CAL token to a particular user account.
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fina27Author Commented:
So the Total: 14    Available: 14      is correct?   I have already done what Pete Long said but I'm just confused on why it is not issuing licenses.
Yeah it's correct and even if 1000 users will connect to your TS server, no license will be issued for the reason I told you about.
fina27Author Commented:
okay. Thanks
Pete LongConsultantCommented:

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