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Licensing diagnosis changes to not available

I have 2 RDS servers (win2008R2) that can see the RDS licensing server (Win2008R2) (ping, log in remotely to, etc), but when I try to specify the licensing server under Session Host config, I get this error:

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 "the license server selected is not connectable at this moment...."

It lets me choose it anyway, but no CALs are used and I get the ‘You have X days left to specify a Licensing server’….warning.

Under ‘Licensing Diagnosis’ on the RDS servers, it shows ‘not available’ for the licensing server and allows me to pass credentials (but will only accept the local admin creds of the licensing server, not the domain admin account) , but if I close/open the dialog box, it goes back to ‘not available’.

The licensing server is happy as can be, all green checks under ‘Review Config’….scope set to Forest.

The licensing server was originally installed to service Citrix CALs, but we have removed Citrix completely from our environment and I also removed the Citrix Licensing app from the licensing server.

Also, Win2000 & Win2003 CALs are still installed on the licensing server as well as the new 2008 CALs. Could those be causing a conflict? 

I have run multiple searches regarding this issue, but no one has my exact scenario.

Thanks


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