Check to make sure the local driver is loaded. You can do this from the CAESAR II Main Menu - "\ESL\Check HASP Driver Status". If the driver isn't loaded, the software will never see the local ESL - this explains why it went looking out across the network.
Theoretically, you shouldn't have to use the Nethasp.ini file, but this means you're using "broadcast", which just causes a lot of un-necessary network traffic, and the software has to look for the License Manager. Using the Nethasp.ini file, pointing to the License Manager, saves time and eliminates all the broadcast traffic.
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Regards,
Richard Ay - Consultant