FIN.FLF License issue

I have installed Express on a customer of mine that is running NAV 2009 executables and a 5.0 SP1 code base. I am getting an error when I open NAV with their older license on the workstation (license from March) that states –

"The file format is invalid. The file is not a vaild license file."

i press OK and then NAV opens and runs fine - I can open excel and Jet works great…

Then I regenerated their license form MS and put it on the client machine and when I open EXCEL and test the connection to JET I get this error…

"Dynamics NAV C/Front reported the following error:
You do not have permission to run the 'System 9110' system.
Contact your system administrator to have your permissions changed."


The first older license works fine once you say yes to the message – just annoying…

Anyone else have this error and know how to resolve it??

Thank you