Failed to switch Terminal Server to INSTALL mode

I'm connecting to a windows 2003 server sp2 using remote desktop. They've asked me to install upgrade an application they have running on the box. Whenever I click Autorun on the CD, I get the following message box.
"Failed to switch Terminal Server to install mode. Please switch the mode manually. To switch the mode, run "change user/install" from the command line."

Ok, so I go to the command line, run the command and get this message.
"Install mode does not apply to a Terminal server configured for remote administration."

I really dont know what to check for. Can someone please help me?
I really dont want to travel to the location to install this software if I can do it remotely.
DFCRJAsked:
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merowingerCommented:
Are u locked on with Remote Desktop?
Nobody on the location who can try it?
Try the same procedure directly on the console!!!
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merowingerCommented:
try connecting with this command to the server!

start->run
mstsc /v: servername /console
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James MontgomeryCommented:
have you tried rdping to the console session?

Start --> Run
"mstsc /console"
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DFCRJAuthor Commented:
I'll see if someone can try it and get the same results/
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DFCRJAuthor Commented:
I'm trying to locate someone, but for reference. I'm at a remote location and I use the outside ip thru rdp to connect to the server. I'm not creating a vpn first then using remote desktop.
I dont know if that matters, I just know I was told to connect that way
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merowingerCommented:
check out this M$ informartion
http://support.microsoft.com/kb/q290519/
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DFCRJAuthor Commented:
if I'm understanding that correctly the MS article refers to pre-windows 2000 SP2.
In versions of Windows 2000 that are earlier than Windows 2000 SP2.

And a user onsite ran the setup and did not receive the error.
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Cláudio RodriguesFounder and CEOCommented:
Well the first thing you must check is if Terminal Server is installed. To check that go to Control Panel | Add/Remove Programs | Windows Components. If 'Terminal Server' is checked it means TS is installed. If not, the server is just allowing Remote Desktop what means TS for administration purposes, limited to 2 users only. This is set on 'My Computer', Properties, Remote tab.

Claudio Rodrigues
Microsoft MVP
Windows Server - Terminal Services
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from_expCommented:
Do you have any information withing event log regarding this problem?
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DFCRJAuthor Commented:
In the components the terminal server license is un-checked.
and no event log errors
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Cláudio RodriguesFounder and CEOCommented:
Terminal Server license is really not required on the same server. You will need that but not necessarily on the same box. But the 'Terminal Server' must be checked. Is that checked?

Claudio Rodrigues
Microsoft MVP
Windows Server - Terminal Services
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DFCRJAuthor Commented:
No - it does not appear anywhere in the list
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Cláudio RodriguesFounder and CEOCommented:
Well in this case, are you sure you have Windows Server 2003 Standard or up? If this is Windows Server 2003 Web Edition, Terminal Server is not an option.
If this is a Windows Server 2003 Standard or up and you do not see Terminal Server at all on the Windows Components list, there is something wrong going on, deeper than a simple add/remove option.
In that case, it may simply be easier to reinstall the server from scratch.
Not the best answer but as you cannot even see this component to be installed I guess something worse is going on and even if you manage to add that, will you trust this server? I would not.

Claudio Rodrigues
Microsoft MVP
Windows Server - Terminal Services
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DFCRJAuthor Commented:
What little experience I have with TS, I agree something is not right.
I'll make a trip to get the software installed, and their server problem can be handled later if they want it addressed. BTW, it's standard 2003.
thanks for the help
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tonyreynolCommented:
I am getting the exact same error when trying to install PeachTree Acct Software via and RDC connection to a Windows 2003 SBS R2 w/ svc packs.

Failed to switch Terminal Server to INSTALL mode
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aaronearlesCommented:
Simply browse to the \peachw\install\ directory and run setup from there. The autorun and root setup.exe must be set to auto switch to install mode for a terminal server, since that really should be the only server its on.

Anyway, I found this page because I had the same problem, and this worked for me.
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