JSI Tip 4781. The Terminal Server Licensing service won't start and events 7024 and 37 are logged?

Your Windows 2000+ server won't start the Terminal Server Licensing service. The Event log contains:

Event Type: Error Event Source: Service Control Manager Event Category: None Event ID: 7024 User: N/A Computer: ComputerName Description: The Terminal Services Licensing service terminated with service-specific error 3221291009. Event Type: Error Event Source: TermServLicensing Event Category: None Event ID: 37 User: N/A Computer: ComputerName Description: Can't start Terminal Services Licensing because of error 'Can't initialize Cryptographic - error code 80090016.'

If the HKEY_USERS.DEFAULTSoftwareMicrosoftCryptographyProviderType 001 key exists in the registry, it prevents the Terminal Server Licensing service from accessing cryptographic information.

To resolve the issue, delete the HKEY_USERS.DEFAULTSoftwareMicrosoftCryptographyProviderType 001 key.

If HKEY_USERS.DEFAULTSoftwareMicrosoftCryptographyProvider exists, delete it also.

Shutdown and restart your server.