here's some screenshots for setting up LMTOOLS. do this after you installed the Network License Manager and after you have activated the license.
click here
In figure 1, you want to go to the Config Services tab. Type a new name for the service; in my example, i put "Autodesk". Find the files like shown in the screenshots. For "Path to the Debug log file", just choose any folder. You won't find any log file for your initial installation. Check USE SERVICES and Start Server at Power Up.
In Figure 2, go to the Service/License File and choose CONFIGURATION USING SERVICES.
In Figure 3, go to the Start/Stop/Reread tab. click START server and EXIT LMTOOLS. then reopen LMTOOLS.
FIgure 4: To check if your network license is running, go to SERVER STATUS and click on PERFORM STATUS ENQUIRY. If you scroll down, you can see a total of 5 licenses issued.