Remote Desktop does not connect

Hi All,
I have just built an image for some new machines that I plan on rolling out to my users.  After I rolled out my first one, I ran into a problem.  A user tried to connect to this desktop using remote desktop and couldn't.  There are no errors displayed on the screen, it just does nothing.  I click connect, put in my credentials and click connect.  After a few seconds of the buttons being greyed out, the buttons just come back and nothing happens.  

I have been looking around for a while and found some people with similiar problems, but their fixes did not help.  Here's a list of what I have tried:

1)  Reboot - didn't help
2)  SFC /scannow - didn't help
3)  Install the remote desktop version 6 download from MS (KB925876).  didn't help
4)  Uninstalled this patch, then reinstalled again - didn't help
5)  Uninstalled anti-virus software - didn't help
6)  Uninstalled windows defender - didn't help
7)  made sure the windows firewall was turned off  - didn't help

Here's some more info:

1)  I can telnet to that machine on port 3389 (I found someone who said this is the port that RDP listens on)
2)  I did a netstat -a and port 3389 shows LISTENING
3)  I can rdp out to other machines
4)  This is a brand new build with all MS patches applied
5)  In the system applet - remote tab both check boxes are checked and domain users are in that group.

In the event log, I get no errors, only an informational message that states:
Event Type:      Information
Event Source:      Application Popup
Event Category:      None
Event ID:      26
Date:            2/1/2008
Time:            12:50:55 PM
User:            N/A
Computer:      XXXXXXXXX
Description:
Application popup:  : \SystemRoot\System32\RDPDD.dll failed to load

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 00 00 00 00 02 00 6c 00   ......l.
0008: 00 00 00 00 1a 00 00 40   .......@
0010: 17 00 00 c0 6c 02 00 c0   ...Àl..À
0018: 00 00 00 00 00 00 00 00   ........
0020: 00 00 00 00 00 00 00 00   ........



Can anyone help me figure this out?  

Thanks!