SOLVED-RDP connection problems

I have 3 users that are on XP boxes that cannot connect to a specific server that is running Windows 2003 Standard. There are other users in the same office with XP that connect to the server without any problem.

The three user's can access the same server from another computer with out issue.

When connecting with their own pc's they all get the same error immediately. It seems that the pc doesn't even make a call out... it just errors out with the following message:

The Remote session was disconnected because there are no Terminal Server client access licenses available for this computer. Please Contact the server administrator.

The server has enough CALs. These user's have remoted into the server yesterday. The users can remote onto other servers from their computers. Also, they can remote onto the server in question from other 'test' pc's.

What is wrong with the three computers? Is it a corrupt cache? I ran CCleaner with ONLY the remote desktop option checked and no reg scan....still no reslut. Also tried flushing the DNS with ipconfig /flushdns.

Another interesting fact is that when another user logs into the problematic pc and tries the server...it fails for them too. Other servers connect fine as the did with the orignal users