Event Viewer displays:

1. The Terminal Services Licensing service cannot start. The following error occurred: Can’t initialize Cryptographic – error code 8009000f.
2. An error occurred during the Terminal Services license server initialization phase.
3. To resolve this issue, ensure that required groups are granted the correct permissions to the TermServLicensing registry key and that the value of the DBPath registry key matches the location of the LServer directory. If the problem persists, shut down and then restart the Terminal Services license server

Fix:

• Change permissions on C:\ProgramData\Microsoft\Crypto\RSA\MachineKeys
• Manually restarted the service (service.msc)

In my case, Local administrator already had full access. Added Domain Admin (Full Access) and Network Services (Full Access)

Check this article which pointed me in the right direction: http://msdn.microsoft.com/en-us/library/bb909654(VS.90).aspx

Next…

Now with the above problem solved… we then move onto our next problem:

http://blogs.msdn.com/b/rds/archive/2010/03/30/event-17-certificate-corruption-on-terminal-services-remote-desktop-license-servers.aspx#CertDeletion

Another useful link:

http://www.windowsitpro.com/article/licensing/jsi-tip-9040-you-cannot-activate-a-terminal-services-license-server-in-a-windows-server-.aspx