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The concurrent use licenses of ArcView, ArcEditor, and ArcInfo require the use of a License Manager application to manage the concurrent licenses. Pre-9.3 versions of the License Manager and associated hardware key used with ESRI's software does not work on a 64-bit machine running Windows XP Professional, Windows 2003 Server, or Windows Vista 64-bit editions.
This is a known limitation.
This problem has been resolved with updated Sentinel drivers and a new License Manager setup. More information about this resolution and an update to download for this issue are available at the following location:
ArcGIS Desktop 9.x License Manager Update
The above patch only works for Windows XP Professional, Windows 2003 Server, and Windows Vista 64-bit Editions running on an AMD64/EM64T 64-bit processor.