Terminal Server CAL's not being issued by Terminal Server License Manager

I have recently configured and installed a Windows 2003 Server R2 specifically to be used as a Terminal Server. A Terminal Server License Manager pre existed on another 2003 server. We had a 2000 Terminal Server that was recently removed from service. I purchased and installed a retail 20 pack of per user CAL tokens, which activated with no problems. When users logon to the Terminal Server, they are issued a temporary license instead of one from the 20 pack that was purchased. The temporary licenses now are going to expire in 3 days. Why won't users draw from the purchased license pool, and how do I fix this? A screenshot of the license manager is attached.
TS-License-Screen.bmp
djaabramsAsked:
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oBdACommented:
You need to change the licensing mode on your terminal server to "Per User" as well; default is "Per Device". Note that even when you change this, you won't notice a decrease in available "Per User" CALs, as these aren't managed yet. From the link below: "[...] This does not remove administrators from End User License Agreement (EULA) requirements to have a valid terminal server (TS) CAL for each user. Failure to have a User CAL for each user, if Device CALs are not being used, is a violation of the EULA."
Details are here:
The function of Terminal Server CALs in Windows Server 2003
http://support.microsoft.com/kb/822134
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Windows Server 2003

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