not establish a connection to the remote computer

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The client could not establish a connection to the remote computer
The terminal server cannot issue a client license

Symptoms: 1. When trying to use RDC to access a Terminal Services with the Application Mode, you may receive this message: "The client could not establish a connection to the remote computer. The most likely causes for this error are: 1) Remote connections might not be enabled at the remote computer. 2) The maximum number of connections was exceeded at the remote computer. 3) A network error occurred while establishing the connection."

2. All existing computers access the TS without problem while new XP receive above message.

3. On the TS, you may receive Event ID 1004 - Source: TermService -Description: The Terminal Server cannot issue a client license.

Resolution: 1. Verify you have TS CAL installed on the server.

2. Verify you have TS licenses available for the connections.

3. Verify the TS can reach the licensing Server.

4. Install latest SP or hotfix - http://support.microsoft.com/?kbid=827355