tunneling windows terminal services via ssh - licensing error message

From: Steven V. (svallarian_at_hotmail.com)
Date: 05/24/04 

Date: 24 May 2004 10:19:01 -0700

Ok, here's my setup.

1)
My PC with latest terminal server client, running in win98
compatibility mode.
2)
using putty, ssh tunnel created between my computer and windows 2000
server (running cygwin/sshd)
3)
Port forwarded local: 3389 to remote: 10.1.2.22:3389
4)
connect using terminal server client
127.0.0.1:3389
5)
everything looks good, but after I hit connect the client sits there
and about 5 minutes later, I get the error.

"A licensing error occured while the client was attempting to connect
(Licensing timed out). Please try connecting again."

A lookup on ms site says contact sysadmin. Well of course that's me
and it doesn't make much sense. Tried running filemon and regmon on
both my machine and the sshd hosting machine, but didn't come up with
much.

Anybody have this problem before? Any ideas?

Steven Vallarian