Windows 2003 Terminal Servers do not recognize the Windows 2000 Licensing server and the following error occurs:
“The remote session was disconnected because there was no terminal server license server available to provide a license.”
The following event ids are logged:
Event ID 1004: No Terminal Server licenses available.
Event ID 1011: There are no Terminal Server licenses available.
Users cannot log on to a session using either ICA or RDP.
Microsoft stated that Windows 2003 Server serves the Windows 2003 Terminal Server licensing. In the old licensing scheme, the licensing was on an Active Directory controller but in Windows 2003 this is no longer a requirement.
Refer to Q279561 Microsoft technote to install a Windows 2003 Server and point all Terminal Server users to the installed license.
Note: Windows XP and pre-release client OS requires TS License of 2003. Vista, Windows 7 and later require license from 2008 Terminal Server.