Michael,
Thanks for your speedy response in regards to the licensing server being needed, that is how it was engineered and sold. The issue has been resolved: On the LS-side using the LMTOOLS under system settings there is a check box that states "include domain". The site that was having issues was only a "trusted site" and not on the same domain. Once unchecked all was right in the world again!
Thanks again,
Mrklboy