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Some or all of the ArcGIS, Autodesk's Autocad FlexLM, or ERDAS license managers do not work when installed on the same computer.
Some coexistent installations of the ArcGIS, Autodesk, and ERDAS license managers perform as expected.
This is a limitation of the ArcGIS License Manager that shipped with ArcGIS 9.2 (FLEXlm v7.0d). The ArcGIS 9.3 License Manager (FLEXNet Publisher v11.4) works with the license managers from other software vendors.
Uninstall the ArcGIS 9.2 License Manager and install the latest License Manager from the following link: ArcGIS 9.x License Manager.