Troubleshooting Remote Desktop Licensing Error Messages :A licensing error occurred while the client was attempting to connect. (Licensing timed out.) Please try connecting to the remote computer again.
Cause: If you are using Internet Protocol security (IPsec) to help protect traffic over TCP between clients and terminal servers, then packet fragmentation might occur. As a result, some packets might not reach their destination, and client connections to terminal servers might fail.
Solution: Configure IPsec to help protect traffic over UDP rather than over TCP.
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Business Desktop Deployment (BDD) 2007
Windows 2003
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