Hi Edwin,
Hope you are keeping well.
First thing I would like to inform you that HASP4/HASP HL 1.x is not supported anymore.
Yes, in general this error should occur if you run application on terminal services. It's possible to way-around it by using a Net key, not sure whether this will work for the utilities, but it should work for the protected app (unless it's hard coded to use local key only).
Regards,
Anubhav