OK, i got it to work. For some reason the license generator would not make a valid license file if I tried to save it in the "license" directory of the network license manager. It would create "license.txt" but would not convert that to a valid "license.lic". When i saved it to "c:\FlexLM" instead, it worked fine. Weird. 
The install instructions were unclear. It should be more like this: 
1) Install the app: 
-Choose Network install and enter your computer name as the server 
-Install the network license manager from the Network Deployment tab on CD1's autorun menu. 
-Generate a .lic file using the included crack. 
-Open LMTOOLS in the Autodesk start programs menu and on the first tab, configure it to use the license file you just generated. 
That should do it. 
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