Can’t connect via Windows 2003 RDP to Windows 2008 R2 Server

remote-desktop-serviceswindows-server-2008-r2

Already asked this question on stackoverflow, but was told it should be here.

https://stackoverflow.com/questions/12404574/cant-connect-via-rdp-to-windows-2008-r2-server

I just installed a Windows 2008 Standard R2 server with RDS and 10 licenses. Whenever I attempt to connect to the server via RDP from a Windows 2003 server, I get the following error.

enter image description here

I am however able to connect from a Windows 7 desktop and using a Linux RDP client.
Anyone know why I'm getting this error and how to resolve the problem?
Thank you in advance.

I have tried various settings in gpedit.msc, but I don't think the problem is coming from there since I am able to connect with those other RDP clients mentionned above.

Any help resolving this issue is greatly appreciated.

Update 3:04pm

Here are the RDP-Tcp properties from the Remote Desktop Session Host Server

enter image description here

As you can see, the Allow connections only from computers running Remote Desktop with Network Level Authentication checkbox was already unchecked.

Update: 4:42pm

From the W2K3 server I am trying to connect from, on the security tab, if I select Attempt authentification, I get this error:

enter image description here

Best Answer

Theres a Microsoft KB for WinXP that may be relevant. Wouldn't hurt to check and see what's under HKLM\Software\Microsoft\MSLicensing