Windows Server 2003 (Standard) Terminal Server not handing out licenses

We had our previous terminal server go down on us so we built a new one and installed Terminal Server and the License Server on it. We require it so that multiple USERS can connect to the server at the same time.(for Remote Desktop purposes) For whatever reason though it will not issue any licenses and thus we are stuck with 1 license. It is the only license server in the domain. Anyone have any suggestions?
ITGeneralAsked:
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thompsonwirelessCommented:
Is this a case where you have to install the CALs for users as well?
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ITGeneralAuthor Commented:
I only have CALs for users. None for per Device (if thats what you're asking)
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XGISCommented:
Try going via Control Panel>Administrative Tools>Terminal Services> then select Terminal Services Configuration go into RDP-Tcp properties and change the security layer from Negotiate to RDP Security Layer. Be sure the encryption is set to client compatible.

then go to Control Panel> System then under Advanced System Settings click on the Remote Tab and make sure that 'Allow Connections from computers running any version of Remote Desktop' is selected
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ITGeneralAuthor Commented:
XGIS: Thanks for responding: Security Layer is already set to "RDP Security Layer". Couldn't find "Advanced System Settings" under System. I suspect thats a 2008 Server thing? This is on a 2003 Server Standard box.
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XGISCommented:
Advanced System Settings
settings.png
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ITGeneralAuthor Commented:
That looks like a Windows 7 dialogue box. The clients trying to connect are XP machines. I don't see those options in 2003 Server or XP.
TerminalServerScreenShot.png
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Jian An LimSolutions ArchitectCommented:
Regardless the problem it should be fine.

http://support.microsoft.com/kb/822134

quote:

Currently, Windows Server 2003 does not manage User CALs. This means that even though there is a User CAL in the license server database, the User CAL will not be decremented when it is used. 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.
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ITGeneralAuthor Commented:
All the more reason why my setup should work. Even if it didn't my license manager shows that I have 5 CALs available to hand out. Yet only 1 user at a time can access the server.
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Henrik JohanssonSystems engineerCommented:
You're only mentioning CALs and license manager. Is it OS-CALs or TS-CALs? A TS in application mode nead to have TS-CALs installed on an available TS Licensing Server (TSLS), which isn't the same thing as the OS-CALs.

See technet article about configuring preferred TSLS
http://technet.microsoft.com/en-us/library/cc737644(WS.10).aspx

Make sure that TS is using same kind of TS-CALs as installed on the TSLS (Device or User)

There's a bug in Windows Server 2003 causing the TS to switch between User and Device TS CALs.
http://support.microsoft.com/kb/834651

Is there anything related in eventlog?
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ITGeneralAuthor Commented:
Thanks henjoh09, not sure what an OS CAL is - this is the first time I've heard of one of those. Only CALs I'm familiar with are Device and User. These are USER CALs. I'll read those articles on Monday and see if they can shed some light.

There is nothing in of the event logs on either the TSLS/Server I'm trying to remote into - or the client machines that connect nor the ones that get disconnected.
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Henrik JohanssonSystems engineerCommented:
The OS CAL I mentioned is often called just CAL. I called it OS-CAL to distinguish it from TS-CAL as it's two different things.
Where do you see the 5 CALs? Is it in "Administrative Tools\Licensing" as "Windows Server" or is it in "Administrative Tools\Terminal Server Licensing"?
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Jian An LimSolutions ArchitectCommented:
okay, your problem is that you only can have 1 user connect at any one time.

is this true?



for a normal windows server administrative mode, you allow 2 remote desktop connection.


what is the exact error message when the next user try to connect?

did you really promote your server to a terminal serveR?
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ITGeneralAuthor Commented:
henjoh09: The 5 CALs have been assigned in Terminal Server Licensing.

limjianan: Yes that is true - only 1 user can connect at any one time. If Terminal Server is NOT installed it will allow 2 remote desktop connections.

When the next user tries to connect it just kicks off the other user - no errors in either the server or client event viewer.
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ITGeneralAuthor Commented:
Well just to add some closure to this. I ended up putting in a call to Microsoft and ate the $300 to find out that the server has to be joined to a domain (even though the only server I'm wanting to hand out the licenses to is the same server).
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XGISCommented:
Strange in our office we can rdp to our server and there is no domain we only have basic workgroup and lan
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