unable to connect to terminal services in 2003

I have a network with 4 windows 2003 servers, one of which is used for terminal services.  I am trying to enable terminal services on the newest server in the network so I can split the load between the 2 boxes.  I have enabled terminal service licensing on the newer server and pointed it back to the original terminal server to get the CALs, and that appears to be working properly.  My issue is now that I have enabled terminal services on the newer server I cannot actually remote into it, even as administrator.  I now get the error "to log onto this remote computer, you must have Terminal Server User Access Permissions on this computer".  The newer server is not a DC.  I have verified that the "Remote Desktop Users" group is listed in "allow logon through Terminal Services" in the group policy, and administrator as well as my user are members of the group.  I have even added Administrator and my own user specifically in the group policy.  The "Deny logon through Terminal Services" GP only lists asp.net.
What else can deny access to Terminal services?
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Darius GhassemCommented:
You need to add this Group into the Terminal Server's Remote Desktop Group. Your current one is setup for DCs only
OPen up Term Serv Connections from admin tools, expand connections, right click the RDP-TCP item.

On the permissions tab do you have 'remote desktop users'?
CybertronnhAuthor Commented:
desaille - the permissions tab does have "remote desktop users" and is correct.

dariusg - could you be more specific?  the domain remote desktop users group has been added to the new term server.
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CybertronnhAuthor Commented:
How do we know that the new terminal server is allowed to use the existing term server licenses? We do have this first term server listed as the licensing server so it looks okay but we are concerned that this may be a licensing issue.
I'm out of ideas but regarding the last question, if you are out of licenses, you will get a different error message.
Darius GhassemCommented:
Did you add to the local terminal server remote desktop group?
CybertronnhAuthor Commented:
When I go to terminal server licensing on the "new" terminal server, I see the license server (the "old" server) and all the licenses.  Status is shown as "Unknown".  When I try to "activate" I get this message:

The license serer activation wizard encountered an internal error from the license server:

Message Number: 0xc0110011

I believe all my permissions as discussed above are correct.
Darius GhassemCommented:
Did you move the licenses? You need to call MS Clearing house to re-activate an activated license
CybertronnhAuthor Commented:
I found a hotfix from microsoft that fixed the internal license error. It has to be some kind of a permissions error - if I upgrade the "new" box to be a domain controller (which I really don't want to do) both servers can share the licenses and I can log in on both servers.  Once I remove AD and make it just a member server, then the licenses can't be shared any more.  The "old" server is an enterprise license server for term serviices.

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CybertronnhAuthor Commented:
My research on microsoft website solved the problem.
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Windows Server 2003

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