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JSI Tip 4258. Terminal Server licensing generates events 29 and 7024?

After installing Terminal Server Licensing on a server, the Terminal Services Licensing tool doesn't show any servers. You may also receive a warning that no license servers were detected.

The System event log contains:

Event ID 29
Terminal Services Licensing can only be run on Domain Controllers or Server in a Workgroup. 
See Terminal Server Licensing help topic for more information. 

Event ID 7024
The Terminal Services Licensing service terminated with service-specific error 29.
This can be caused by installing Terminal Services licensing on a server that is NOT in a workgroup or on a server that is NOT a domain controller.

NOTE: A Terminal Services License server is only required for workgroups/domains where the Terminal Services mode has been set to Application Mode. Use Add/Remove Programs / Add/Remove Windows Components to remove it.

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