WIN 95 Laptop won’t take avail TS CAL

We have a laptop running win95 that we have been using as a thin client to run TS on our W2K server. It was issued a permanent license on 3/22/02. No changes were made to the laptop, but suddenly we get a license cannot be issued error when we try to connect, even though there are still 19 permanent licenses available for issue according to TS License manager. We have applied Microsoft’s license patch with no effect. The laptop cannot be upgraded to W98SE or W2KPro due to insufficient memroy (32M). Short of pitching the laptop thru the 20th story window, andone know what else we can do?