Windows Mobile 2003 based Pocket PCs have a problem with their Terminal Services Client which causes them to only be able to access the Terminal Server once. Subsequent attempts display an error message indicating that "The Terminal server ended the connection or a network error occurred. Please try to reconnect", and an error with Event ID 1004 and Source TermService is generated in the Terminal Servers' Event Log indicating that "The Terminal Server was unable to cannot issue a client license".

This issue is caused by a problem with the MSLicensing key (HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing). Deleting this key will permit you to connect once to the Terminal Server, but will need to be done again for subsequent attempts. This has been an issue which is seriously frustrating to owners of affected devices - including our own forum user pda-hell.

pda-hell obtained a fix (more accurately, a workaround) from hp for his hp iPAQ devices that resolved the problem, but was unable to distribute it to anyone due to restrictions from hp. Now, however, hp have made this fix available to the general public.

This workaround, our information suggests, clears the MSLicensing registry key each time the user starts the Terminal Services Client. This is further confirmed by hp's own notes:

"This SoftPaq places a shortcut icon for the application TSC.exe in the Programs folder. The TSC application will need to be run each time you want to connect. click Start, Programs, and then the icon for TSC."

According to the hp page, the following models are supported for this update:

It's unclear at this stage as to whether or not this update could work on other brand Pocket PC's - if you try it, please do let me know whether or not it works!

You can download the workaround from here. Thanks to Marc from iPAQabilities for the link!