I have a newly built Windows Server 2000 SP4 machine that was just built for this test. I had this same machine running for 3 years servicing Windows XP clients with Terminal Services until it blew up the other day. The issue I have is no existing PC's in our domain can logon to this box. When you try to connect you get a box that says "You cannot connect to the remote computer. Try connecting again. If the problem continues, contact the owner of the remote computer or your network administrator." In the event viewer on the server you get an event ID od 1004 "The terminal server cannot issue a client license". The Server box has License Server running on it and it is activated. The server box is not part of our domain, it is just in its own workgroup. If I build a new Windows XP machine wiht it joined to our domain I am able to logon with it with no issues.
What settings on the XP Clients need to be changed to fix this issue? I have removed the HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing from the registry. If I do this the machine gets to a logon screen but will not accept any keystrokes.