Why is the KMS count decreasing

Today we tried to activate another Windows 7 machine and received the following error:

The software Licensing Service reported that the computer could not be activated. The count reported by your Key Management Service (KMS) is insufficient. Please contact your system administrator.

I actually installed Windows using a VL copy of Windows 7 and not via an .wim image.

When I check our actual count I saw it was 20. So I reloaded it again and checked the count and this time it says its 18. The count at one time was well above 25 because I have activated many other systems before this with no issues.

What would be causing the count to decrease. I have read many documents as to why it will not increase but none stating why it would decrease.

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If the workstations don't check in, they are removed.  

Client activations are valid for 180 days. This period is called the activation validity interval. To remain activated, KMS clients must renew their activation by connecting to the KMS host at least once every 180 days. By default, KMS client computers attempt to renew their activation every seven days. After a client’s activation is renewed, the activation validity interval begins again.


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forrest2002Author Commented:
So this will only affect my ability to activate new installations correct? Those that are active and as long as they "check-in" every 180 days and no drastic hardware changes are made will remain active?

That is correct.
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Windows 7

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