Terminal Server does not assign licenses

Here is the scenario and I hope someone can help:

We recently installed a windows 2000 member server and added 25 terminal server licenses. This server has service pack 3 I went ahead and activated the server by calling microsoft and it shows asactivated. Why would the server assign a temporary license to a user that will expire in 90 days if there are 25 licenses available? Am I missing something? I’m probably not understanding the licensing procedure but it seems that the server is not assigning permanent tokens to the clients. I would think that after all 25 licenses have been issued, the server would then issue temporary licenses. Any insight on this would be appreciated.

Thanks!