DBA 0 Newbie Poster

I have a windows nt server with sql 7 installed and am getting the following in event viewer. The product Microsoft SQL Server 7.0 is out of licenses. Use License Manager from the Administrative Tools folder for more information on which users are out of compliance and how many licenses should be purchased.

This has been setup per seat licence which allocates a licence to each pc a user accesses a database from their machine. i have tried to revoke valid licences for application we no longer use however this doesn't seem to stop it allocating invalid licences. Is there a way round this? any help would be greatly appreciated.

DBA