Terminal Licensing Server may not issue Per Device CALs and event id 1004 is generated

Source: Microsoft Support

RAPID PUBLISHING ARTICLES PROVIDE INFORMATION DIRECTLY FROM WITHIN THE MICROSOFT SUPPORT ORGANIZATION. THE INFORMATION CONTAINED HEREIN IS CREATED IN RESPONSE TO EMERGING OR UNIQUE TOPICS, OR IS INTENDED SUPPLEMENT OTHER KNOWLEDGE BASE INFORMATION.

When you use Terminal Server client to connect to a Windows Server 2003 that meets both of the following conditions:

��������� Windows Server 2003 Terminal Licensing Server with Per Device Client Access License.

��������� Windows Server 2003 Terminal Server running as Per Device.

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it generates a Event id 1004:

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Event ID: 1004

Computer: Computer Name

Description: The terminal server cannot issue a client license. It was unable to issue the license due to a changed (mismatched) client license, insufficient memory, or an internal error.

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The Terminal Server will discover the Terminal Licensing Server but still the Terminal Licensing� Server won't issue the Client Access License to the client.

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Additionally, even if you delete the X509 Certificate under

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HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\TermService\Parameters�

Note You would also see the Licensing Server name in this key.

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and discover the Licensing Server this key would be generated back indicating that the Terminal Server is able to discover the Licensing Server but still will not issue the key.

This happens for the following reasons:

��������� The Everyone Group is missing from the �Access this computer from the network� User Rights Assignments.

��������� The Terminal Server cannot download the CAL for the client.

To resolve this issue, in the User Rights Assignments at the Domain Controller level or at local policy on the Terminal Licensing Server, add the Everyone Group to the �Access this computer from the network�, and then reboot.

To diagnose this issue:

Run LSDiag on the Terminal Server and the Licensing Server you will see that the Everyone Group is missing from the "Access this computer from the network� User Rights Assignments.

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If a simultaneous netmon traces is taken between the Terminal Server and Terminal Licensing Server while connecting to the Terminal Server, you would find;

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Source����������� Destination��������� SMB����� Session Setup AndX Response, Error: STATUS_LOGON_TYPE_NOT_GRANTED

NT Status: STATUS_LOGON_TYPE_NOT_GRANTED (0xc000015b)

�Since the Terminal Server does not have this right it is not able to download the CAL for the client.

For more information, see the following articles in the Microsoft Knowledgebase:

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Client, service, and program incompatibilities that may occur when you modify security settings and user rights assignments

http://support.microsoft.com/default.aspx?scid=kb;EN-US;823659

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How to override the license server discovery process in Windows Server 2003 Terminal Services

http://support.microsoft.com/?id=279561

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