Probably not, but that depends on the answers to my other
questions:
Do you have available TS CALs on the TS Licensing Server?
Have you verified that the TS can locate the LS (if not, the TS
will also log an eventID 1010 "cannot locate licensing server").
Is the client running XP Home or XP Pro? Home needs a TS CAL that
you have bought and installed on the LS, Pro should get a build-in
TS CAL from the Licensing server. None of this will work if the TS
cannot locate the LS.
If the very first connection from this client was refused, then
there will not be a temporary license on the client at all. If
that is your scenario, it means that the grace period of the TS
has ended and it hasn't detected a LS. If it connected once
(receiving a temporary license), but was refused on the second
connection, then it probably means that there is no available TS
CAL on the licensing server, but there could be other reasons as
well, including network issues.
What are the numbers in the TS Licensing Manager regarding
installed, available and issued TS CALs? Is the LS issuing TS CALs
to other clients without problems?