Citrix License Acquistion Error when opening 2X Apps

My users are receiving an error message when accessing 2X published Applications stating "Citrix Presentation Server license acquisition error from CTX3 server: All licenses are currently in use. Please try again later. If this issue persists, contact your system administrator to acquire additional licenses"

What I don't understand is if we are accessing a 2X published application, why are we receiving an error message from Citrix. We are running Citrix 4.5 on the same servers that have 2X Terminal Server Agent running. From my knowledge of how our Citrix and TS licenses are, we have enough.

Has anyone encountered this that can shed some light on this problem.

 

Citrix error

Are you able to connect successfully via Citrix to this server? With PS4.5 on the same server you will consume one citrix license for every rdp/2x connection.