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Event ID: 38 Source: TermServLicensing
From a newsgroup post: "EventID 38 can be caused by a corrupt client license, and if it is the only problem, you can often solve it by deleting the license from the client’s registry (HKLM\Software\Microsoft\MSLicensing). However, if it occurs in combination with an internal error on the Licensing Server, it usually means that the terminal server licensing database has become corrupt. Usually this requires uninstalling and reinstalling of terminal server licensing".
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