When a Windows 2000 Professional computer uses the Citrix ICA Client to connect to a Citrix MetaFrame terminal server that runs on a Windows 2000 server, they receive:
Network or dialup problems are preventing communication with the Citrix server.
An attempt to automatically restore the connection will begin after a delay to let the network recover. If the problem persists please contact your System Administrator.
The terminal server may post:
Event ID: 1004
Event Source: TermService
Event Description: The Terminal Server cannot issue a client license.
If you apply the hotfix for Terminal Server Licensing and the Security Fix for Terminal Server, and then reset the terminal server licensing service, the client computers can connect to the terminal server, but only one time. On later connection attempts, the clients again receive the error message.
If you delete the MSLicensing registry key on the client computers, they can connect, but only once. Subsequent attempts to connect generate the same error message.
To fix the problem, install Service Pack 3 for Citrix MetaFrame 1.8 on the terminal server.