When you use the Terminal Services Advanced Client (TSAC) to connect to a Windows 2000 Terminal Server, you receive:

VBScript: Error connecting to terminal server: <ServerName or IP address>

The System event log on the terminal server contains:

Event ID: 1004
Description: The terminal server cannot issue a client license.

NOTE: Other clients can connect to the terminal server.

This problem may be caused by a corrupted MSLicensing registry key on the client computer.

To fix the problem:

1. Use Regedit to navigate to:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing.

2. On the Registry menu, Export Registry File to a mslicensingbackup.reg  file, incase you must Merge the file to recover.

3. Right-click the MSLicensing sub-key and press Delete.

4. Press Yes to confirm the deletion.

5. Exit Regedit.

6. Restart your computer to allow Windows to rebuild the MSLicensing key.

NOTE: See VBScript Error Message Occurs When You Use Terminal Services Advanced Client.