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A quick fix i used was
regedit
Delete the registry folder
HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\MSLicensing
then relogin as administrator
If you are running Terminal Server Licensing in a Windows Server 2003 environment and the licensing mode on the terminal server is set to Per Device but the license server is configured to issue only Per User CALs, then only temporary Per Device licenses are issued from the available pool of licenses. These licenses cannot be upgraded. When the temporary licenses are close to expiration, the following message appears on the terminal server: "Your terminal services temporary client license will expire in N days. Please contact your system administrator to get a permanent license." In this case, Event ID26, Source: Application Pop-up appears in the application event log.
Similarly, Terminal Server clients that run Windows XP or Windows 2000 might receive the following error message, if the client cannot connect to the terminal server for this reason: "The remote session was disconnected because the local computer client access license could not be upgraded or renewed." In this case, Event ID1011, Source:TermService appears in the application event log on the terminal server, with the following message: "The terminal services client has been disconnected because its temporary license has expired."
SolutionDo one of the following, based on the requirements of your environment and license agreement:
The terminal server might not be able to locate the license server.
SolutionTo resolve this issue, perform the troubleshooting procedures described in The terminal server cannot locate the license server.
If the terminal server still cannot discover the license server, then perform the following steps.
Do one of the following, based on the requirements of your environment and license agreement: