FLEXlm error: -92,10 Feature removed during lmreread, or wrong SERVER line hostid

Error Message

When starting ArcMap or ArcCatalog, the following error message is displayed, even though the Desktop Administrator shows that an ArcInfo, ArcEditor or ArcView product license is available:

"FLEXlm Error: Feature removed during lmreread, or wrong SERVER line hostid.
Feature: ARC/INFO
Server name: server1
License path: C:\Program Files\ESRI\License\ArcGIS9x
FLEXlm error: -92,10."

Cause

The most likely cause of this problem is that there are *9.lic files located in C:\Program Files\ESRI\License\ArcGIS9x that point to a previous Sentinel hardware key number or SERVER hostname.

Solution or Workaround