Terminal Server Licensing error 7054 - system has reached logon limit while in Term Serv Man remote control

I'm getting the following error when I try to remote control a user's session on our terminal server.

"session (ID **) remote control failed (error 7054 - the system has reached its licensed logon limit. please try again later)"

The terminal server is Windows Server 32bit 2003 R2 32bit and the licensing server is a Window Server 2008 and is the PDC.

The  terminal server can see the licensing server fine but the only issue comes when you try and remote control the session. The CALS have been installed and can be seen fine (per user) from a open license.

Exhausted google and need to get this sorted asap so any help with be great
Ben CampbellIT User, Manager, DiplomatAsked:
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Ben CampbellIT User, Manager, DiplomatAuthor Commented:
We installed the licensing server on one of the domain controllers, which appeared to work. Seems that the message was slightly misleading, and the issue was more to do with the licensing server not being visible from the TS
Ben CampbellIT User, Manager, DiplomatAuthor Commented:
The solution offered pointed us in towards the fix, though was not complete
Winston LawenceCommented:
Anyone found a solution for Windows 2003 Terminal Server?
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Windows Server 2003

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