you are right.
Per user licensing method was not checked
EULA Requirement: You need to purchase and 'assign' a license for every named used that will / can use your terminal servers. You can reassign a license from user to another when you reasonably expect the user to never connect to the system again. You cannot re-assign licenses to affect concurrent licensing.
Technical: You need to put your terminal server in per user licensing mode and install the license packs. We do not track or enforce user licensing in Windows 2003. With Longhorn we will be adding user tracking to help you manage your licenses.
http://support.microsoft.com/kb/823313http://support.microsoft.com/kb/822134