Windows 2000 Terminal Services requires a licensing server to manage and distribute TS Client Access Licenses (TSCALS).  In a Windows 2000 domain environment, the TS Licensing server must be located on a domain controller.  In an NT4 environment, the licensing server can be located on any server in the domain, including the Terminal Server itself. 

The licensing server will be activated on all Windows 2000 Terminal Servers, and they all will have licenses installed.  Having the TS licensing service installed, activated and in use on the other servers allows them to issue new licenses to users as they log on.  In addition, installing, activating and using the Terminal Services Licensing service on all servers help to maintain a common image on all servers.  

In an NT4 environment, Terminal Servers locate a licensing server by broadcasting on the network.  (In a Windows 2000 environment, the location of a licensing server is stored in the Active Directory.)  Appendix A contains a flowchart of how TS licensing works when clients connect to a terminal server.

Perform the following steps to install the hotfix (Q287687) on all servers.  This hotfix provides unlimited TS Client Access Licenses (TSCALs) for MS Enterprise Agreement (EA) customers:

• Navigate to the hotfix. It is available on the Microsoft web site at …

• Run the hotfix.

• Restart the server in order for the hotfix to become effective.

1. Log into the console as administrator.

2. Run the TS Licensing Manager (Start, Programs, Administrative Tools, Terminal Services Licensing).

3. Expand the "All Servers" icon and select the licensing server to be activated.

4. Click "Action" on the menu bar and select "Activate Server".  The Licensing Wizard appears.  Click Next.

5. On the Connection Method screen, select "World Wide Web".  Click Next.

6. Run IE and go to https://activate.microsoft.com (note that this is a secure site so https is needed).

7. On the Windows 2000 Terminal Service Licensing web page, select a language, click "Activate a license server", and click Next.

8. On the web page, enter the product ID that is displayed on the License Server Activation wizard screen.  Unfortunately, there is no way to copy this information from the activation screen and paste it into the web page.  It must be entered manually. 

9. Choose "Select or Enterprise Agreement" for the "Purchase Method".

10. Enter your company information:

11. Leave all the other fields blank.

12. Verify the information and click Next.

13. Copy the license server ID from the web page and enter it into the Licensing Activation wizard.  (Note that you can copy/paste one group at a time.)  Click Next.

14. On the "Completing the Licensing Wizard" screen, make sure that the "Install licenses now" box is checked.  Click Next.

15. On the "Licensing Wizard" screen, click Next.

16. Toggle back to the web page that should still be displaying the license server ID.  Click the "Yes" button to obtain client licenses.

17. In the "Product Type" field, select "Windows 2000 Terminal Services Client Access License".

18. Enter 4000 as the quantity of licenses to obtain (43,139 will not fit in the screen).

19. Enter your Enrollment Number.

20. Click Next.

21. Verify the information and click Next.

22. Copy the license key pack ID and enter it into the Licensing Activation wizard.  Click Next.

23. Click Finish.

24. In the Terminal Services Licensing administrator, click on the server that was just activated and verify that it has an unlimited number of Windows 2000 Terminal Services Client Access Licenses.