OK- so maybe he started IA on his end without knowing what I am doing. Contacted him to find out he has not launched it for a couple of hours. I restart IA, and now I am getting the popup within the first 30 seconds of launch. Had the other developer use Task Manager to make sure it really is not running, and it is not.
Relaunch again, same error. Again. And Again. Running out of sane reasons why this is happening. I ask the other developer to start IA on his end, and it starts up without any errors!
This may be connectivity related, like if the check does not handle blocked connectivity well, as our I.T. is fond of pushing down changes to things without talking to the devs first.
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Text version (in case the image link breaks):
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ABC - InstallAware Studio
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You have exceeded the maximum number of InstallAware licenses granted to your organization. One license is required for each developer that uses InstallAware.
InstallAware will shut down in exactly 60 seconds after this dialog is closed. Please save your work, check your licenses, and restart the application.
Would you like to visit the InstallAware website shown below to get licenses for additional InstallAware developers?
http://www.InstallAware.com/buydirect.asp
(the command line build tool is not restricted in any way and may be deployed onto an unlimited number of build machines)
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Yes No
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Would LOVE to know why I am getting this and the other dev is not. Actually, I do not really care - I just need to know how to be able to use a product that is paid for and I have the right to use.

Thanks!
Peace!
-=- James.