Cannot Log into terminal services.

Server is WIndows 2003 Server standard.. I have two questions.. I have purchased 5 Terminal Services cals so people can connect from there computer at home or any computer.. I that a per user or per Computer license? The licenses have been installed ....

Another is that I set up 5 users created a group policy and set it to allow this users to connect to Terminal Services.. I added them to the Remote Desktop user group but when I try to log in user one of those accounts I get an error from windows saying " To log on to this remote computer, you must be granted the Allow log on through Terminal services right. By default, members of the remote destop users group have this right. If you are not a member of the remote desktop users group or another group that has this right, or if the remote desktop user group does not have this right, you must be granted this right manually" And no matter what I do I keep getting this error.. This is a small business so this server is also a Domain controller and a DNS server and Application server..