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Server 2003: Remote Control Failed / Error 7054 - The system has reached its licensed logon limit

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Yep, yet another person getting this error. This was a 2000 Server that was upgraded to 2003 R2 Enterprise. Worked fine as a 2000 Server and I can log people in all day long just can't remote anyone. Verified the licensing, even removed and re-added Terminal Services. Also removed it and rejoined the domain. Changed the licensing for the OS from Server to Per User or Device.  I can remote users on other servers, just not this one...

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