2008 TS issue Licences/Remote desktop

I have users  that are unable to connect to our 2008 rdpc server after being able to, checking the event log I see this
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"The Terminal Services license server cannot update the license attributes for user "Username" in the Active Directory Domain "domain.local". Ensure that the computer account for the license server is a member of Terminal Server License Servers group in Active Directory domain "domain.local".
If the license server is installed on a domain controller, the Network Service account also needs to be a member of the Terminal Server License Servers group."
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The License server is running on the RDPC server not the Domain controller. I checked users and computers OU one the DC and under the Terminal server OU I see the TS/License server

The user can make the connection but as soon as the session manager starts it disconnects with the "cannot connect to this server message, this is only happening to Windows 7 users.

I found another resource talking about using adsiedit and adding

Read msTSExpireDate
Write msTSExpireDate
Read msTSLicenseVersion
Write msTSLicenseVersion
Read msTSManagingLS
Write msTSManagingLS

 to the users TS permissions but no joy.

Anyone got any ideas or pointers?

For more info, the domain was updated  from 2000 to a 2003 forest level but both of my DC's are 2008 R2