Let me rephrase the message and will come back with the solutions available to solve this ugly problem created by Microsoft.
“The terminal server has exceeded the maximum number of allowed connections. The system can not log you on. The system has reached its licensed logon limit. Please try again later.”
In Linux and UNIX systems you can have as many remote connection with a system you like but in Microsoft windows server you can only have two remote connection at a time.
This is not a very big problem and any network and system administrator can solve this problem in just few seconds, you just need to remember few very easy commands of windows. If you are using windows XP and like to solve this problem you need to upgrade your command line to at least windows 2003 version or you need to logon to windows 2003 server.