CALs and TS CALs
Terminal Server Licensing Server
Activating the Licensing Server
Activating the TS CALs
ACP Enabled thin clients require a terminal server running either Windows 2000 Server or Windows 2003 Server with Terminal Services enabled as an operating system.
In addition to the standard Microsoft Client Access License (CAL), each terminal requires an additional Microsoft Terminal Server Client Access License (TS CAL) to connect to the server. This TS CAL is required, whether using a thin client or a fat client, using RDP or ICA. This licensing is per seat; ten terminals would require ten TS CALs, even if only two were connected at a time.
Note: Windows 2000/2003 Server is not normally sold with TS CALs. These need to purchased separately and installed on the Terminal Services License server.
Windows 2003 Server introduced a change in TS CAls, making them available in two types, TS Device CALs and TS User CALs. The TS Device CAL licenses one device for unlimited users, but one user at a time can connect to Microsoft Terminal Servers. This functions like the previous Windows 2000 TS CAL. The TS User CAL licenses one user to unlimited devices, but one device at a time, to connect to Microsoft Terminal Servers.
A new method of license management was introduced in Windows 2000 Server. All TS CALs are installed on a single Terminal Services Licensing Server. This acts as a repository for all TS CALs. The terminal servers request TS CAL authentication from the Terminal Services Licensing Server as terminals attach to terminal servers.This allows a single site for management and authentication of terminal server connections.
A server becomes a Terminal Server Licensing Server by selection of the option during the installation phase or by selecting Add/Remove Programs> Add/Remove Windows Components from the Control Panel and selecting the Terminal Services Licensing option. See Microsoft Terminal Server Installation for details.
Although it is commonly installed on a Terminal Server, the Terminal Server Licensing Server does not need to be a separate computer. It is a service that can run on any Windows 200X server. In a domain, Microsoft requires that the Terminal Server Licensing Server be installed on the Primary Domain Controller.
The Terminal Services Licensing server is activated by connecting to the Microsoft Certificate Authority and License Clearinghouse through the Internet or by phone or fax.
Windows 2000 Server with Terminal Services enabled will issue 90-day temporary licenses while the Terminal Services Licensing server is being setup and activated. If this period has elapsed, the terminal will not connect to the terminal server and will display an "Error Number 50" message box.
The licensing of the Microsoft components of a Windows 200X terminal server is a is a two-step process; one must first authorize the Terminal Server Licensing Server, then one must activate the licenses. The license activation will be repeated for each license pack.
To begin the process select Start>Programs>Administrative Tools>Terminal Server Licensing on the Terminal Server Licensing Server.
Terminal Services Licensing
Highlight desired server
Selected Terminal Server
Select Action>Activate Server from the menu bar.
Licensing Wizard
The Licensing Wizard will launch. Follow the steps of the wizard.
Note: The ID numbers shown on screens have been changed to "1234". Please use the appropriate numbers that apply to your server and licenses.
Connection Method
There are several methods for connecting to the Microsoft License Clearinghouse.
Select the desired method from the drop-down box and select Next.
Note: This article will detail the World Wide Web method.
The server needs a License Server ID for authorization. This is done on the Microsoft web site.
Go to the https://activate.microsoft.com site mentioned in the dialog box.

Microsoft Terminal Services Licensing Web Site
Select Activate a license server and select Next.
Customer Information Entry
Fill out the information forms and select Next. The Product ID is supplied by the Licensing Wizard as shown in the License Server Activation picture.
Customer Information
Continue with web-based wizard. Verify the data and select Next.

Server Activation Number
The Microsoft will provide the License Server ID.
Add this number to the form in the Licensing Wizard as shown in the License Server Activation picture.

Wizard Completion
Once the License Server ID is placed in the appropriate fields on the Licensing Wizard, you will have a choice to continue and activate the license packs, or to stop with the server activation.
To continue adding license packs, return to the Microsoft Licensing web site.
Microsoft Terminal Services Licensing Web Site
Select the Install client license key packs and select Next.
Customer Information
Fill out the form and select Next.
TS CAL Information
Select the Product Type and fill in the fields with the Quantity, Authorization Number, and License Number from the Licensing Certificate that was included with the purchase of the licenses.
Select Next to continue.
License Information
Verify that the information is correct and select Next to continue.
License Key Pack ID
The Microsoft site will provide the License Key Pack ID. This needs to be installed in the Licensing Wizard.
License Key Pack ID Fields
Fill in the fields of the Licensing Wizard with the License Key Pack ID from the Microsoft site and select Next.
Licensing Completion
The licenses will be added and will be displayed in the Terminal Services Licensing window.