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.