That is correct. A Windows 2000 server cannot issue Windows 2003 TS CALs. A Windows 2003 licensing server can issue TS CALs for Windows 2000 and for Windows 2003. Strictly speaking, you do NOT need to run a Windows 2000 license server on a DC in some situations, but it's generally an accepted practice to do so. ________________________________ From: thin-bounce@xxxxxxxxxxxxx [mailto:thin-bounce@xxxxxxxxxxxxx] On Behalf Of Bill Sent: Tuesday, March 01, 2005 11:16 AM To: thin@xxxxxxxxxxxxx Subject: [THIN] Licensing again OK we have a 2K domain, 2 DC's. We also have a 2003 server that we plan on running Terminal Services on. I've read that the TS Licensing server in a 2K domain must reside on a DC. However, I've also read that a 2000 server cannot be a TS license server for a W2K3 box. Can someone enlighten me?