Event ID: 1004 The terminal server cannot issue a client license.




Windows 2000 Domain Controller - SVR1 - Licensing Server
Windows 2000 Terminal Server - SVR2 - Terminal Server

6 Clients connecting to Terminal Server across IPSEC VPN between sites
receive an error connecting to the Terminal Server. The following is
written to the Event log of the Terminal Server.

Event Type: Warning
Event Source: TermService
Event Category: None
Event ID: 1004
Date: 08/02/2005
Time: 09:01:08
User: N/A
Computer: LAWLONTS1
The terminal server cannot issue a client license.

Users can delete the MSLicensing Registry key (KB) from the client
which allows them to connect ONCE only. If they log out or disconnect
and attempt to connect again - same problem.

They are currently deleting the registry key daily to allow them to

Servers and clients are all running Windows 2000 Service Pack 4.

Clients are running latest build of RDP Client.

Server configured for default licensing server according to:
"Establishing Preferred Windows 2000 Terminal Services License Server
Article ID : 239107"

Removed and reinstalled Licensing service on SVR1.

Changed SVR2 to Admin mode, no licensing issues, changed back to
Application Mode, same problem.

Rebuilt X509 Certificates as per Microsoft article and reactived server
using Phone Method:
"Because of a security error, the client could not connect to the
Terminal Server -

We have almost exhausted all of our resources with this one. If anyone
has experienced this or has any ideas please post.




Further information:

Since clients are Windows 2000 Professional they use an 'Existing
Windows 2000 License'.

Each time they delete the licensing registry key, it gets issued a new
license under the Terminal Services Licensing console on SVR1. 83
Licenses have been issued already to 6 computers.

This new license works for ONE (1) connection to the Terminal Server.


Vera Noest [MVP]

There might be a black hole router between your client and the TS,
which blocks packets above a certain size. This prevents the
transfer of the permanent TS CAL to the client (on first
connection, the client gets a temporary license, on second
connection, it gets a permanent license).

If this is the problem, you have to change the MTU size. Check the
Terminal Services FAQ, there are 2 items about this under


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