CD-keys and playing multipel nations on llamaserver

[Kadelake]

Is anyone familiar with how the piracy protection works? We've run into some problems in a llamaserver game:

We needed a sub for one of the powerful nations and one of the other players in the game offered to switch nations since he was about to be eliminated soon. However, when the game hosted he got this message:
"CD key violation
Your CD key has been used on multiple installations. Your orders have not been executed."

I suppose this was because he sent in 2h files for two nations that turn. Does anyone know if it will work alright from now on or have we managed to mess up the game permanently