JSI Tip 9040. You cannot activate a Terminal Services license server in a Windows Server?

When you attempt to activate a Terminal Services license server in Windows 2000 Server, or in Windows Server 2003, the Terminal Services Licensing service starts, but does NOT activate.

If you inspect the System event log, you see an event similar to:

Type: Error
Date: MM/DD/YYYY
Time: HH:MM:SS
Event ID: 38
Source: TermServLicensing
User: N/A
Computer:
Details: Can't generate a license for client because of error 'Can't add certificate to store, error c0010020.

To workaround this issue, you must uninstall the Terminal Services Licensing component and then reinstall it:

01. Open a CMD.EXE window.

02. Type the following commands, pressing Enter after each line:

net stop Termservlicensing
CD /d %SystemRoot%\System32
ren LServer LServerOLD
exit

03. Open Control Panel.

04. Open Add/Remove Programs.

05. Open Add/Remove Windows Components.

06. Clear the Terminal Services Licensing box and press Next.

07. Press Next and Finish.

08. Shutdown and restart your server.

After the restart:

01. Open Control Panel.

02. Open Add/Remove Programs.

03. Open Add/Remove Windows Components.

04. Check the Terminal Services Licensing box and press Next.

05. Select Application server mode on the Terminal Services Setup page and press Next.

06. On the Terminal Services Licensing Setup page, select the option you want to use, and type the path of your license server database into the Install license server database at this location box.

07. Press Next and Finish.

08. Close the Add/Remove Programs applet and Control Panel.

09. Start / Run / Eventvwr.msc / OK.

10. Verify that the System event log has two (2) events that are similar to the following:

Event Type: Information
Event Source: TermServLicensing
Event Category: None
Event ID: 5
Date: MM/DD/YYYY
Time: HH:MM:SS
User: N/A
Computer: <ComputerName>
Description: Policy Module %SystemRoot%\system32\<File_Name>.dll for company <Company Name> has been loaded.

Event Type: Information
Event Source: TermServLicensing
Event Category: None
Event ID: 0
Date: MM/DD/YYYY
Time: HH:MM:SS
User: N/A
Computer: <ComputerName>
Description: Terminal Services Licensing was started.

11. Use Windows Explorer to verify that the %systemroot%\System32\LServer folder has been created.

12. Open Terminal Services Licensing from the Administrative Tools folder on your Start menu.

13. Right-click the name of your license server and then press Activate.

14. Follow the on-screen instructions.