Running a Windows 2003 in application mode with five TS licenses installed. Recently, two licenses expired and will not reissue. I receive the following error "Remote session was disconnected because the local computer's client access license could not be upgraded or renewed." What gives? There are five available licenses; however, the licenses will not reissue. Ideas?

The remote session was disconnected because the local computer's client access license could not be upgraded or renewed. Please contact the server administrator.

Cause: The Terminal Server licensing mode on the terminal server might be set to Per Device, while the license server might be configured to issue only Per User client access licenses (CALs). If this is the case, then the license server issues only temporary licenses that cannot be upgraded. When the temporary licenses are within several days of expiring, "Event ID 26, Source: Application Pop-up" appears in the application event log on the client. The event message indicates the number of days remaining before the temporary license expires. Similarly, "Event ID 1011, Source TermService" appears in the application event log on the terminal server.

Solution: Change the Terminal Server licensing mode from Per Device to Per User.

http://www.microsoft.com/resources/documentation/WindowsServ/2003/standard/proddocs/en-us/Default.asp?url=/resources/documentation/WindowsServ/2003/standard/proddocs/en-us/mstsc_tshoot_lic.asp

Yes , i completely agree with crack .
If the above step doesn;t work then delete the mslicensing key from the registry in the path
HKLM/SOFTWARE/MICROSOFT/MSlicensing
delete the complete MSlicensing key from the client computer which tries to establish a remote session .
after u delte this key , the client machine would once again be issue a temp license and it would be valid for another 120 days in case of 2003 licensing server .

ANAND RAO
Microsft directory services team

delete the registry to have another 120 days temp license is actually a illegal way. Why not purchase an additional server act as TS Licensing Server to manage them?