license manager seems to be looking for a license for the local administrator of each machine on our network.. as well as the domain user logged onto that machine. i.e. for each machine: machinename\administrator and domainname\username. LM also seems to be granting the license first to the machinename\admininstrator and putting an alert beside the domainname\username that is logged onto that machine. Why is this? I have 16 licenses for 16 machines in per seat mode. LM says i need another 19. Should I change to per server? Are there any consequences of doing this? Thanks...

First, Microsoft allows for a one time change from per seat to per server. If you have 16 licenses and 16 machines then you have one license per machine and no one can access any shares on these machines from the network because that would be a second connection and you are licensed for one connection per computer. When you buy a per server license, you specify how many users will be connecting to that one server simultaneously. Once you reach the maximum connections per server the next person trying to connect will be denied. Per seat licensing would be beneficial for a call centre with 3 shifts. There are 30 computers but 90 users log on, 30 users per shift. Per Server is when you want many users to access one machine.