Cause:
It has to do the with the DI-API (32 bit) installed on the client computer trying to connect to the SAP licence server.
Solution:
They have to go where the DI-API (32 bit) is installed, there should be a sap-config.xml file in there (there will be a few) the config files for the DI-API (32 bit) are pointing to a different licence server then SAP itself and therefore it's causing problems.