Just install the licensing onto a member server (if not in
a domain) or onto the domain controller (if in a domain).
Then install you licenses. If you are moving operating
systems (like from 2000 to 2003) then you also need to get
the correct licenses. If your terminal server is 2003,
then your license service will also need to be installed
on a 2003 machine, and the same goes for 2000.
-M