We have started deploying Windows 7 in our organization and have setup a KMS server on one of our 2008R2 Domain Controllers. We've reached the 25 machine activation threshold, we're currently at 30. However we have 3 Windows 7 PCs that, when trying to activate against the KMS, still give error code: 0xC004F038. Description: The Software Licensing Service reported that the computer could not be activated. The count reported by your Key Management Service (KMS) is insufficient.

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Please contact your system administrator. This error is incorrect. The count is not insufficient. We have 30 machines, 27 of which have activated without any issues.

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One of the PCs that won't activate is X64, would that make a difference? Even if it does it doesn't explain why the other two (32-bit) won't activate.

These are fresh installs of Windows 7. Also, when using VAMT 2.0 to try to manage the licenses, it's constantly crashing, making it impossible to manage the licenses from a central location. Any input on this issue would be greatly appreciated! Darrell, The KMS server was properly setup in DNS, however when I went to check this out I noticed that all of our 2008 servers had registered themselves as KMS hosts in DNS, so some PCs were hitting the main host which had the 25, others were hitting another which only had 11, and yet others were hitting the 3rd host which had none. I ran slmgr /cdns on all of the servers that SHOULD NOT be hosting KMS and removed the DNS entries for them. Flushed DNS on the systems that refused to activate and then tried activation. Thank you so much for your suggestion, it helped me pinpoint this issue!

Darrell, The KMS server was properly setup in DNS, however when I went to check this out I noticed that all of our 2008 servers had registered themselves as KMS hosts in DNS, so some PCs were hitting the main host which had the 25, others were hitting another which only had 11, and yet others were hitting the 3rd host which had none. I ran slmgr /cdns on all of the servers that SHOULD NOT be hosting KMS and removed the DNS entries for them. Flushed DNS on the systems that refused to activate and then tried activation.

Thank you so much for your suggestion, it helped me pinpoint this issue!