Error 0x8007007f: A problem is preventing Windows from accurately checking the license for this computer

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After you install SP2 for Windows Server 2003 x64 you get the following error message when you try to login using local console or RDP:

A problem is preventing Windows from accurately checking the license for this computer: Error Code 0x8007007f

After performing some research on the internet, this appears to have been a very common problem. A simply reboot fo the server, after the initial post-SP2 install reboot, appears to have resolved all of the problems.

Simply to help other people find this article here are some event logs which were also found on the system after the installation:

Event Type: Information
Event Source: NtServicePack
Event Category: None
Event ID: 4371
Date:  21/03/2007
Time:  15:21:52
User:  NT AUTHORITY\SYSTEM
Computer: SERVERNAME
Description:
Windows Server 2003 Service Pack 2 was installed (Service Pack 1 was previously installed).

Event Type: Information
Event Source: Windows Update Agent
Event Category: Installation 
Event ID: 19
Date:  21/03/2007
Time:  15:21:59
User:  Not available
Computer: SERVERNAME
Description:
Installation Successful: Windows successfully installed the following update: Windows Server 2003 Service Pack 2 for x64 Editions

Event Type: Information
Event Source: Windows Update Agent
Event Category: Installation 
Event ID: 22
Date:  21/03/2007
Time:  15:21:59
User:  Not available
Computer: SERVERNAME
Description:
Restart Required: To complete the installation of the following updates, the computer will be restarted within 5 minutes: 
- Windows Server 2003 Service Pack 2 for x64 Editions