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Article ID: 972069 - Last Review: October 7, 2011 - Revision: 2.0

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Consider the following scenario:
  • You enable the License Server Security Group Group Policy setting on a Terminal Server license server that is running Windows Server 2008. The Terminal Server Computers group is automatically created after the Group Policy setting takes effect.
  • You add a terminal server that is running Windows Server 2008 into the Terminal Server Computers group of the license server.
In this scenario, you encounter one of following issues:

Issue 1

The terminal server is running Windows Server 2008. This terminal server cannot obtain terminal licenses from the license server if the domain of the terminal server is in mixed mode. Therefore, users of this terminal server cannot create terminal sessions.

Issue 2

In the Terminal Services Configuration snap-in window of Microsoft Management Console (MMC) of the terminal server, is the Licensing Diagnosis tool. The Licensing Diagnosis tool cannot locate license servers that are in a disjointed namespace. When this occurs, you receive the following error message:
License Server cannot issue the Terminal Services Client Access Licenses (TS CALs) to the terminal server because the "License Server Security Group" is enabled


Cause of issue 1

The domain is in mixed mode, and the Network Service account starts the Terminal Services. In this scenario, the terminal server that is running Windows Server 2008 uses an anonymous token to access the license server.

The anonymous token cannot pass the remote procedure call (RPC) validation on the license server. Therefore, the terminal server that is running Windows Server 2008 cannot obtain terminal licenses.

Cause of issue 2

The Licensing Diagnosis tool assumes that the first part of the fully qualified domain names (FQDN) is equal to the NetBIOS domain name. However, this assumption is not true in a disjointed namespace. Therefore, the tool cannot locate license servers that are in a disjointed namespace.


Hotfix information

A supported hotfix is available from Microsoft. However, this hotfix is intended to correct only the problem that is described in this article. Apply this hotfix only to systems that are experiencing the problem described in this article. This hotfix might receive additional testing. Therefore, if you are not severely affected by this problem, we recommend that you wait for the next software update that contains this hotfix.

If the hotfix is available for download, there is a "Hotfix download available" section at the top of this Knowledge Base article. If this section does not appear, contact Microsoft Customer Service and Support to obtain the hotfix.

Note If additional issues occur or if any troubleshooting is required, you might have to create a separate service request. The usual support costs will apply to additional support questions and issues that do not qualify for this specific hotfix. For a complete list of Microsoft Customer Service and Support telephone numbers or to create a separate service request, visit the following Microsoft Web site: (
Note The "Hotfix download available" form displays the languages for which the hotfix is available. If you do not see your language, it is because a hotfix is not available for that language.


To apply this hotfix, your computer must be running Windows Server 2008 or Windows Server 2008 Service Pack 2 (SP2).

Restart requirement

You must restart the computer after you apply this hotfix.

Registry information

On a terminal server in a mixed mode domain, you must create the following registry entry, and then you must set its value to 1.
Location: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
Name: UseMachineID
Value: 1

File information

The English version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.
For all supported x86-based versions of Windows Server 2008
Collapse this tableExpand this table
File nameFile versionFile sizeDateTimePlatformSP requirement
For all supported x64-based versions of Windows Server 2008
Collapse this tableExpand this table
File nameFile versionFile sizeDateTimePlatformSP requirement
For all supported Itanium-based versions of Windows Server 2008
Collapse this tableExpand this table
File nameFile versionFile sizeDateTimePlatformSP requirement


Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.


For more information about possible licensing problems on terminal servers, visit the following Microsoft Web site: (
For more information, click the following article number to view the article in the Microsoft Knowledge Base:
824684   ( ) Description of the standard terminology that is used to describe Microsoft software updates

  • Windows Server 2008 Datacenter
  • Windows Server 2008 Enterprise
  • Windows Server 2008 Standard
  • Windows Server 2008 for Itanium-Based Systems
kbautohotfix kbexpertiseadvanced kbfix kbsurveynew kbqfe KB972069
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