Hello Eric,

Terminal Server licensing is handled independently of SBS 2000 licensing.
Please take a look at the following KB article which goes into great detail
on licensing Terminal Server in application mode:
http://support.microsoft.com/?id=306622.

Note that if you have Windows 2000 Professional or Windows XP Professional
clients, they do not need licenses for Terminal Server. Windows 98, etc.
computers will need licenses, however.

Also, if all of your clients are 2000 or XP Pro, you still need to activate
Terminal Services per the article, or else after 90 days it will no longer
function correctly.

Lastly, before switching SBS 2000 to application mode Terminal Services, I
recommend reading through the following article:
http://support.microsoft.com/?id=282009.

Best Regards,

Dana Becker
Microsoft Small Business Server Support

This posting is provided "AS IS" with no warranties, and confers no rights.