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Unable to borrow licenses

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I receive an error
"error borrowing/returning license"
When trying to borrow licenses.

using arcinfo 10 with sp5
license manager 10

I have tried the borrow patch at
http://support.esri.com/en/knowledge...s/detail/38021
with no luck

DNS resolution is not needed to reach the licnese server.

What could be the problem here?

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