Citrix connection does not connect after remote machine was moved and renamed.

We have a user who replaced their machine at a remote site with a machine that was previosuly at another remote site.  Both the replaced (98) and the new machine (xp) were once able to connect to the Citrix server at the home office.  The machine that was moved to the new site was renamed and given a static internal IP and is able to connect to the network and internet there normally.  The Citrix client setup is the same as before, but the user gets "Network or dial-up problems are preventing communication with the Citrix MetaFrame server. If the problem persists, please contact your network administrator.
Number of failed reconnection attempts: 0"  each time they try to connect.  I have tested connecting to the same Citrix connection from a 2000 machine for the first time and it worked fine with the same settings.  It looks like on the Citrix server that when this user connects, an error "terminal services cannot issue a client license" shows up in the event viewer.  I see a license in the list for the test machine that worked, but not for the new machine that does not, though we know if used to connect at the other site.  Do we need to clear the old license from it since the machine was renamed and moved, or is there something else going on?  If so how is that done?  Also the Terminal Services Licensing service on the Citrix server is not on, that service runs on the domain controllor if that helps.

Thanks,