Terminal Servier has two modes of operation.
1) Admin Mode
2) Application Mode
In Admin mode the terminal server software does not check to see if the person logged in has a license to run software on the server. The catch is that only two connections are allowed at a time.
In Application Mode you can have lots of connections (The MSDN version limits it to some number like 5) However, each connection requires a separate license to run licensed software. For example, if you install an expensive software package on the server you must also install a license manager that will track how many users have been granted license to the software. If you buy a 5 person licnese for the application only 5 users can access the application. The license can be locked to an individual user or just limited to some number. The latter is called a floating license since it can be used at any location. If you're ever worked with older time share multiuser systems you will understand all this application server stuff.
