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Event ID: 1004 Source: Microsoft-Windows-TerminalServices

The terminal server cannot issue a client license. It was unable to issue the license due to a changed (mismatched) client license, insufficient memory, or an internal error. Further details for this problem may have been reported at the client's computer.
First make sure the server licensing mode matches the licenses you have purchased/installed in the TS Licensing Manager console. I received this because there was already a Win2003 TS Licensing server that was automatically detected in AD and the 2008 Terminal Server was trying to obtain TS CALs from the W2003 Licensing server. I manually configured the 2008 server to obtain TS Licenses from a 2008 Licensing server and the issue was resolved.
In one case, this event is misleading because the license is successfully issued. Therefore, this event may confuse administrators and cause unnecessary troubleshooting efforts. See ME957068 for a hotfix applicable to Windows Server 2008.

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