Question : Terminal Services Licensing Doubts

This is a 2003 r2 install that is a member server on a win2k domain. Updates are current and the TS licensing server is installed on the TS itself. User load will be 25 max when fully deployed. The license server is activated, and is config'd for Per User CALs. The Server has 50 per-server licenses.

I originally bought/installed 5 open per-user lics for testing, but entered 25 when I added them to the server, thinking I needed to put in the final amount that I was going to have installed. After testing, I bought 20 more and installed them. I now have the following showing in the TS licensing applet. See attached images.

1) Existing Windows 200 Server - Terminal Server CAL Token - builtin, Unlimited Total, Unlimited available, Issued = 0. I understand this one.

2) Windows Server 2003 Terminal Server Per User CAL Token - Open, 25 Toal, 25 Available, Issued = Not Available.

3) Windows Server 2003 TS Per User CAL - Open, 20 Toal, 20 Available, Issued = 0.

I have 16 users connected so far, and am worried that some how I am working on 120day temp Lics.

I have read the Licensing Primers, and understand the first entry, and I understand that this licensing applet does not actually monitor and regulate USER Lics. I have been told:

1) Tokens are the temp Lics, and line2 will no longer show "Not Applicable" once the 120 day period is over, and then it will show numbers in the Issued column. Is that true?
2) That per-user TS licensing in 2003 is basically the honor system. I find that hard to believe. Doesn't the licensing service check with the clearing house to compare what I have bought with how many are connected?
Why do the 2nd and 3rd lines show differently?
I just don't want to get refused connections when I am fully deployed and the 120 day clock runs out.

Answer : Terminal Services Licensing Doubts

CALS in terminal services that are setup as per user in windows server 2003 are not counted. You have to have them for audit purposes but they are not counted, so when you have 15 users connected, it will still show 20 licenses available. I bought my CALS to stay compliant, but I have never had any problems, and I have run TS in 03 for two years now.