Remote Desktop : The remote computer disconnected the session because of an error in the licensing protocol

I normally have no issues remoting to our only server/domain controller. Today I notice the following issue

Remote Desktop : The remote computer disconnected the session because of an error in the licensing protocol. Please try connecting to the remote computer again or contact your server administrator
TALYOFFEAsked:
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etchy74Commented:
Have you tried the below steps from Microsoft?  http://technet.microsoft.com/en-us/library/cc756826(WS.10).aspx

The remote computer disconnected the session because of an error in the licensing protocol. Please try connecting to the remote computer again or contact your server administrator.

Cause:  The terminal server might not be able to locate the license server.

Solution:  Perform the following steps:

   1. Verify that the license server is correctly installed.
   2. Verify that the Terminal Server Licensing service is running on the license server.
   3. Verify that the client, the terminal server, and the license server can communicate by ensuring that Domain Name System (DNS) is configured correctly on each computer. To do this, run the ping command from each computer to each computer using the IP address, FQDN, and the NetBIOS name. If any of the ping commands fail, verify the DNS configuration on the network.
   4. On the terminal server, set a preferred licensing server to connect to. You can do this by using the registry, a Windows Management Instrumentation (WMI) script, or, in Windows Server 2003 with Service Pack 1, you can use Group Policy settings or Terminal Server Configuration.

See also:   Install Terminal Server Licensing; Set preferred Terminal Server license servers; Terminal Server license server roles

Solution:  If the previous solution does not resolve this problem, create a backup of the MSLicensing registry key and its subkeys on the client, and then remove the original key and subkeys by doing the following:

   1. On the client, navigate to the following registry subkey: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing.
   2. Click MSLicensing.
   3. On the Registry menu, click Export Registry File.
   4. In the File name box, type mslicensingbackup, and then click Save.
   5. If you need to restore this registry key in the future, double-click mslicensingbackup.reg.
   6. On the Edit menu, click Delete, and then click Yes to confirm the deletion of the MSLicensing registry subkey.
   7. Close Registry Editor, and then restart the computer.

When the client is restarted, the missing registry key is rebuilt.

Caution

Incorrectly editing the registry may severely damage your system. Before making changes to the registry, you should back up any valued data on the computer.

See also:  Removing Terminal Server Licenses From an RDP Client (http://go.microsoft.com/fwlink/?LinkId=38560)
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TALYOFFEAuthor Commented:
I believe it should be correctly installed as I have not experienced this issue before. I have been using RDP to this server for 6 months now with no issues.
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etchy74Commented:
I have had this error before and doing their solution (registry edit on the client to rebuild the MSLicensing key) fixed it.  Did you give that a shot?
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TALYOFFEAuthor Commented:
Yes I did try this. This is happening on multiple workstations. Not just on mine.
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etchy74Commented:
Oh ok, I thought it was just one station.

Are there any relative errors in the Application log on the server?  
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TALYOFFEAuthor Commented:
nothing in event viewer except a few exchange related errors
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Windows XP

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