When you install SP4 for Terminal Server, or any program that uses ODBC, such as SQL, you must first stop the TSLS (Terminal Server Licensing Service). If you install while TSLS is running, you will receive a message similar to:
ODBC components on your system need to be updated but one or more files are in use or are marked as read-only. Please close all applications and press retry. Note, that a reboot may be required to free the files.
The error message does not indicate which programs are "in use".
To stop TSLS, use Control Panel / Services / Terminal Server Licensing Service / Stop. You may have to respond Yes.
Programs (and SP4) must be installed in installation mode and run in execute mode.