Here the situation I'm facing..

I have some clients that are trying to connect to a
terminal server.  These clients are running WinXP Home
and Win98.  I have already purchased and installed a TS 5
CAL pack.  When I go into the TS Licensing menu under
Admin Tools it shows that I have used 2 and have 3
avail.  The problem is when the WinXP Home and 98 users
try to connect to the terminal server the event log
reports a "terminal server server could not issue a
license".  If there are 3 available why won't it?  Any
suggestions would help greatly.