the License Logging Service is unreliable.
Unless you are running Windows 2003 SBS, you are fine to disable the service on all servers.
We have a Windows 2003 AD running Exchange 2003, SQL 200 and we have disabled LLS on all servers with absolutely no problems. In fact, there are fewer spurious errors in the server event logs, so our life has been made easier.
License Logging Service (LLS) is a tool that was originally designed to help customers manage licenses for Microsoft server products that are licensed in the Server Client Access License (CAL) model. LLS was introduced with Windows NT Server 3.51. By default, LLS is disabled in Windows Server 2003. Because of original design constraints and evolving license terms and conditions, LLS cannot provide an accurate view of the total number of CALs that are purchased as compared to the total number of CALs that are used on a single server or across the enterprise. The CALs that are reported by LLS may conflict with the interpretation of the End User License Agreement (EULA) and with Product Usage Rights (PUR). LLS will not be included in future versions of the Windows operating system.
For example, when you use the Licensing snap-in (Llsmgr.msc) to view the purchase history of product licenses, the Purchase History window may be blank or inaccurate. However, when you access the purchase history from another server computer, the purchase history may be correct. You can add new licenses, even on computers where the purchase history is inaccurate.
Note This article does not apply to Microsoft Windows Small Business Server 2003. Do not disable the License Logging Service on SBS 2003. If you disable the License Logging Service on SBS 2003, the server will restart every 60 minutes.