TS Connection error

[gurdeep]

When the client (Win2k Pro or WinXP Pro) attempts a
connection, it receives the following error message.

Remote Desktop Disconnected
The client could not establish a connection to the remote
computer.

On the terminal server immediately:
Event ID: 1004
Source: TermService
The terminal server cannot issue a client license.

 

[Ivan Leichtling]

It sounds like you need to deploy a license server.
See the licensing section of the TS FAQ at:
http://www.microsoft.com/windows2000/community/centers/terminal/terminal_faq.mspx