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2003 Terminal Server cannot find a windows 2003 TS License Server

we have 2 TS servers 1 is a 2003 Server and one is a 2008 R2 server that has the licenseing installed on it.

we have configured the 2003 termianl server to use the 2008 R2 lincense server, pressed the button and it says its valid.

we have 75 windows 2008/2008R2 user Cals

it is also my understanding that if the licensing server does not have 2003 licenses and the group policy setting to not allow upgrading license is not enable then the license server should issue a 2008 license to the 2003 rdp client

we are still getting this message

cannot find windows 2003 terminal server license server. This computer need to connect to a windows server 2003 Terminal Server License Server within 58 days; otherwise, Terminal Server will stop functioning. Click here to launch the Terminal Services Configuration tool to assign a valid License Server

is there something else we need to do.


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