When using consolone an Zdm 6.5, c1 should create a file named
license.read in c:\novell. What happens then if c: is not c: but m: ?
I'm running c1 on a Citrix w2k3 server and I get the same error as
Patrick Farrell see post ConsoneOne asking for Zenworks license code????

The drives letters have been renamed for Citrix.
C1 with ZDM 6.5 snappins works just fine on a winxp workstation so
there is no problem with the license object.