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To resolve this issue make sure that your license server is up and running. You should also check if your license path location is valid ; to do this, set by setting an environment variable by typing in, for example:

LM_LICENSE_FILE = port@host

...

c:\licstat>lmutil.exe lmdiag -n -c @virtualcenter
lmutil - Copyright (c) 1989-2008 Acresso Software Inc. All Rights Reserved.
FlexNet diagnostics on Fri 12/26/2008 19:42
-----------------------------------------------------
License file: 27000@virtualcenter
----------------------------------------------------- 

When running the above command, lmutil stalls, uses 100% CPU, and eventually fails to run lmdiag.

The above problem occurs, because lmutil v11.6 that is used to query the FlexNet license server lmgrd, is not compatible with FlexNet v10.8. Note that other cross compatibility problems between other lmutil versions may also exist, but they have not been tested yet.

To resolve this issue, run the lmutil version of lmutil that comes is compatible with the FlexNet version you're of the license server you are using.