Windows Server 2003 Terminal Services Licensing

I am having difficulty understanding how M$ TS licensing works. Our company has 22 TS device CALs and we find that some of the devices, mostly thin clients, appear both under the TS licenses and under the Temporary Licenses. Some appear several times causing issues since we now have no licenses available as the issued license expires.

Any suggestions on how to resolve this problem would be appreciated. We are committed to Microsoft so please keep suggestions in context.