If you plan on using Terminal Services in a production environment to support thin client users, you must bring up a Terminal Services licensing server on your network within 120 days. Terminal Services licensing is independent of regular Windows Server 2003 licensing, meaning that a client license for Windows Server 2003 does not necessarily entitle a user to connect to a terminal server and use applications. (Connecting for administrative purposes in Remote Administration mode is allowed without a separate license.)
Before actually placing a license
server on your network, determine the type of license server you
need. There are two types: a
server, which distributes licenses only within the Active
Directory domain you select, or an
server (the default choice), which allocates licenses to any computer within the network. You’ll be prompted for your choice upon initial licensing setup. Do note that, when you actually install the license server, unless you want to spend hours troubleshooting weird errors on your servers, avoid installing Terminal Server Licensing on a terminal server computer. Use a separate machine. Also consider installing Terminal Services on a member server, not a domain controller. Domain controllers have their own load considerations, and the additional network, processor, and disk constraints of Terminal Services can adversely affect performance. If you must install on a domain ...