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Event ID 1004 is logged when a thin client tries to obtain a Terminal Services license

This article has been archived. It is offered "as is" and will no longer be updated.
When a thin client tries to obtain a Terminal Services license, the following error message is logged in the application event log of the Microsoft Windows 2000 Server-based computer that is running Terminal Services:

Event Type: Error
Event Source: TermService
Event ID: 1004
The terminal server cannot issue a client license.

This problem may occur if both of the following conditions are true:
  • You connect to the Terminal server from a Microsoft Windows-based terminal (WBT) device, such as a Microsoft Windows CE-based WBT device.
  • The thin client has an expired temporary Terminal Services license.

Hotfix information

A supported hotfix is available from Microsoft. However, this hotfix is intended to correct only the problem that is described in this article. Apply this hotfix only to systems that are experiencing this specific problem.

If the hotfix is available for download, there is a "Hotfix download available" section at the top of this Knowledge Base article. If this section does not appear, submit a request to Microsoft Customer Service and Support to obtain the hotfix.

Note If additional issues occur or if any troubleshooting is required, you might have to create a separate service request. The usual support costs will apply to additional support questions and issues that do not qualify for this specific hotfix. For a complete list of Microsoft Customer Service and Support telephone numbers or to create a separate service request, visit the following Microsoft Web site: Note The "Hotfix download available" form displays the languages for which the hotfix is available. If you do not see your language, it is because a hotfix is not available for that language.
Important This hotfix is to be applied to the Terminal Server License Server.


This hotfix requires Windows 2000 Service Pack 3 (SP3) or later.

For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
260910 How to obtain the latest Windows 2000 service pack

Restart requirement

You must restart your computer after you apply this hotfix.

Hotfix replacement information

This hotfix does not replace any other hotfixes.

File information

The English version of this hotfix has the file attributes (or later) that are listed in the following table. The dates and times for these files are listed in coordinated universal time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time tool in Control Panel.
   Date         Time   Version            Size    File name   --------------------------------------------------------------   20-Aug-2003  21:02  5.0.2195.6808     330,512  Lserver.exe 
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
The error message is logged even though the Terminal server has available permanent client licenses.
For additional information about a similar problem that may occur it the WBT device client has been issued a permanent license, but that license has expired, click the following article number to view the article in the Microsoft Knowledge Base:
813508 Cannot connect to a Terminal Server from a Windows-based terminal
For additional information about how hotfix packages are named, click the following article numbers to view the articles in the Microsoft Knowledge Base:
816915 New naming schema for Microsoft Windows hotfix packages
824684 Description of the standard terminology that is used to describe Microsoft software updates

Article ID: 827355 - Last Review: 12/08/2015 04:26:53 - Revision: 2.6

  • Microsoft Windows 2000 Server
  • Microsoft Windows 2000 Advanced Server
  • kbnosurvey kbarchive kbautohotfix kbhotfixserver kbqfe kbbug kbfix kbqfe kbwin2000presp5fix KB827355