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Windows Server 2008 KMS Activation Problem

I cannot successfully activate Server 2008 using KMS on my network.  When I attempt to activate KMS clients I receive an error (0xC004F038) which seems to indicate that there are not enough KMS clients for the KMS server to register with Microsoft.

The details of the error are:
"Activating Windows Server (R), ServerStandard edition (some hash value)...Error: 0xC004F038 The computer could not be activated.  The returned count from your Key Management Service is insufficient."

Here's what I've done so far:
- Built the 1st of 5 2008 Standard Servers and instaled the KMS host.
- Verified firewall and DNS settings for KMS host
- Installed the product key using 'slmgr -ipk <my product key>
- Built 4 other 2008 Standard servers to increase the total count to 5, which I believe is the minimum for the KMS server to activate.
- Ran 'slmgr -ato' on the KMS host - activation was successful!
- Tried to run 'slmgr -ato' on the 4 KMS clients but received the error noted above.
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OriNetworks

You need a minimum amount of clients for it to activate. I believe the minimum is set to 10 clients before it will activate with microsoft.
The minimum amoutn is 25 according to this microsoft KB http://support.microsoft.com/kb/942961
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ASKER

I believe that the minimum requirement for Server 2008 KMS is 5 and that only VIsta requires 25 to activate according to the Volume Activation 2.0 Overview Guide:
-------------------------------------------------------------
KMS requires a minimum number of physical computers in a network environment. You must have at least five (5) physical computers to activate Windows Server 2008 and at least twenty-five (25) physical computers to activate Windows Vista clients. These minimums, called activation thresholds, are set so that they are easily met by enterprise customers. For more information about activation thresholds, see the Volume Activation 2.0 Planning Guide.
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With this in mind I shoudl have just enough to activate Server 2008.
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blanchard81
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this has been driving me nuts for the last couple hours. thank you for your explanation. most of the ms documentation does not specify that these must be PHYSICAL servers. i was able to do the same and request a MAK key and was then able to activate my 8 servers without any problems. thanks again!
I am having the same issue and the same error but in my configuration I am using 1 KMS host and 5 clients (all physical servers). Still no luck. Any ideas?

PS C:\Users\Administrator> cscript.exe C:\Windows\System32\slmgr.vbs /dli
Microsoft (R) Windows Script Host Version 5.8
Copyright (C) Microsoft Corporation. All rights reserved.


Name: Windows Server(R), ServerEnterprise edition
Description: Windows Operating System - Windows Server(R), VOLUME_KMS_R2_B channel
Partial Product Key: XXXXX
License Status: Licensed

Key Management Service is enabled on this machine
    Current count: 3
    Listening on Port: 1688
    DNS publishing disabled
    KMS priority: Normal

Key Management Service cumulative requests received from clients
    Total requests received: 37
    Failed requests received: 6
    Requests with License Status Unlicensed: 0
    Requests with License Status Licensed: 0
    Requests with License Status Initial grace period: 31
    Requests with License Status License expired or Hardware out of tolerance: 0
    Requests with License Status Non-genuine grace period: 0
    Requests with License Status Notification: 0