Below is a link to the instructions that allow you to connect to your AWS EC2 virtual private server, for an instance based on a Windows Server template during the AWS EC2 instance wizard. So far, I've chosen three different instance types that say "free tier eligible".
When I use the private key (*.pem file) to decrypt the password, and connect using Windows Remote Desktop, it won't connect to my newly created server (based on public IP address that EC2 assigned).
What could be the reason? I've opened up port 3389 for RDP (remote desktop) on each test. I've tried setting the inbound rule to 0.0.0.0/0 as well as "My IP", which defaulted to my external IP address. Neither worked.
https://docs.aws.amazon.com/AWSEC2/latest/WindowsGuide/connecting_to_windows_instance.html
Best Answer
You don't go into detail on how you're logging in but if you're copying, and pasting the password using the mouse login often fails. Your answer describes a work-around but there is a hot-fix available for Windows 7 here: https://support.microsoft.com/en-us/kb/2547752