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More than two users cannot connect to Windows 2008 Terminal Server using Remote Desktop

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Last Modified: 2013-11-21
One of our client is running Windows 2008 server. The server is configured as a Domain Controller as well as Terminal Server. The Terminal Server has been activated and per device licensing (quantity - 20) has also been installed successfully.
The problem is that 2 users concurrently can access the Terminal Server using RDP but once the third user tries to access it it is giving the following error:
"This computer cannot connect to the remote computer. Try connecting again. If the problem continues contact the owner of the remote computer or your network administrator".
Need your help to solve this problem.
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