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Trouble with running multiple instances of ArcDesktop on same machine

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Hi All,
Prior to upgrading our License Manager to 10.2, we were able to open multiple instances of ArcMap and ArcCatalog on the same machine without any issues. We are running Arc10.0 on desktops. There is an option file in the LM that calls for one ArcInfo to be reserved for one user and the other is true floating, however, in use most of the time.

If I open ArcMap and then attempt to open ArcCatalog or another ArcMap, I get the following:

Provide your license server administrator with the following information:
Cannot connect to license server system.
The license server manager (lmgrd) has not been started yet,
the wrong port@host or license file is being used, or the
port or hostname in the license file has been changed.
Feature: Arc/INFO
servername: name
License path: @name;
Flexnet Licenseing error: -15570

Attempting to change back to the old server which still has the LM on it (to be shut down later this week) it tells me that the server name isn't a license manager. When looking at the ArcGIS Administrator, it also says that there are no ArcInfo desktops available and I've logged out, so that isn't true. Using the script 'Where Have All the Licenses Gone' shows that only the other editor has ArcInfo open. He is also using the same server and license manager and Arc10.0.

What gives? If I have to take this back to LM 10.1 or 10.0, I need to do it tonight! I'm moving the editors and users over to the new server as I type!

Thanks

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