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The terminal server client <client name> has been disconnected because its license could not be renewed.
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See ME922499 for a hotfix applicable to Microsoft Windows Server 2003.
This problem might occur because the value of the PolicyAcOn registry entry in the HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\TerminalServer\Licensing Core\PolicyAcOn subkey changes from either 2 (the correct registry value for the Per Device licensing mode) or 4 (the correct registry value for the Per User licensing mode) to an invalid value of 0. See the link to "Fixing Client Connectivity Problems" to solve this problem.
In addition to deleting individual client licenses, there are instances, as I just encountered, where it may be appropriate to reset the entire database. The company I work for just went through a major OS revision change and all the old client licenses were in the system. Cleaning it out was better than trying to troubleshoot client issues as they occurred. See ME273566 for information on how to rebuild Windows 2000 and 2003 Terminal Services Licensing database.
The registry entry that controls the "Per Device" or "Per User" settings may be set to an invalid value. See ME834651 for a hotfix applicable to Microsoft Windows Server 2003.
See "Citrix Support Document ID: CTX104054" for details on this event.
Just delete the registry key "HKEY_LOCAL_MACHINE\Software\Microsoft\MSLicensing" and try again. Details can be found in ME187614.
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