So here is one of possible solutions if you are getting this error when trying to connect to Terminal Server (Be sure to backup your registry before you do this or export the MSLicensing keys, in case this isn’t the cause of your problems): The cause of the problem was in HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing. Since I was sure the licensing was in order I searched for another possible problems.
Please try connecting to the remote computer again or contact your server administrator. The remote computer disconnected the session because of an error in the licensing protocol.
Today I got a call from client that he can’t connect to his Terminal Server from his Windows XP client.
This is a repost of a post from an old blog, made on February 29, 2012, that used to be on: