Windows Xp remote desktop issue

Have you tried logging into the local machine account instead of the domain account? If you can then we need to take a look a the Domain policy.
Jacob

http://www.intelliadmin.com/Downloads.htm

download the "Enable Remote Desktop - Remotely"
Launch the tool and then try pusing to the problematic server.

Hope this helps!

Host machine is XP professional SP3. I'll give downloading and installing the new software a try.

Jake - This was a user who connected fine before he received this new machine. Nothings been changes with the domain policy since the new machine was setup.

Verify that the local user account have an account password; this is part of the security upgrades in place for Vista SP1 and XP SP3.  Are there non-Microsoft firewall software running?

Google "Remote Desktop XP SP3" and there are tons of things that changed to the host service; although my personal favorite is enabling concurrent sessions:
http://alonbilu.wordpress.com/2008/05/17/enabling-multiple-concurrent-remote-sessions-on-windows-xp-sp3-patched-file-included/

NOTE: unauthorized patches may do bad things to your computer.

here are the ways i recommend to troubleshoot RDP

first, use TELNET!  it is your friend.  it will help narrow down the source of the problem.  also, to make things simple, disable windows firewall (and any other software firewalls) on the computer that you want to connect to.  also, to make things simple, connect using a static IP

to troubleshoot:
from a computer on the same network & subnet as the computer you want to connect to:
ping IP address.
if not successful, it's a network type of issue (i.e. you are not on the same network, there is a firewall between the two computers, etc).
if you can't ping, you won't be able to RDP...
once you are able to ping..
telnet to the computer from another computer on the same subnet:
telnet ip_address port
if you did not change the default RDP, the port is 3389.  so, if the computer's ip is 192.168.0.5, your telnet will be:
telnet 192.168.0.5 3389

you should get a screen with nothing... just a flashing cursor.  this means RDP is correctly configured on the computer, and there is no network issue between the two computers.
if you get a connection refused, then the problem is that the 3389 port is not open as it should be.  try using a different port and/or double check that no firewall is blocking that port.
http://support.microsoft.com/kb/306759

if you can successfully telnet from within the network... it's time to try it from the outside (assuming you want to do this).  if you are not able to telnet to the WAN IP, it means you need to check your port forwarding in the gateway router.

zephyr_hex

No problem pinging and no problem with telnet.

Same problem with remote desktop. If I use the computer name it looks like it starts to try to connect - buttons go grey and only option is to cancel - but the remote desktop connection just returns to normal. If I use the IP address of the machine the process is even quicker.

It's a new PC and as far as I can tell only the Windows firewall was active. I tried turning it off and leaving it on with the Remote Desktop exception check marked with no success.

I also tried reinstalling remote desktop client but I get the error message that because of the service pack it cannot install.

One strange thing is that even though the machine has SP3 on it I do not have the entry in add/remove programs.

Hmm... what about the domain settings?  More importantly, can you Remote Desktop *FROM* this machine into a reliable host (Client #2, which does not have this problem)?

From an old discussion (found via Google), can you verify that (from a fresh host/target machine reboot) that Windows Firewall/ICS Service is running?  Apparently, after SP3, it doesn't always run reliably -- and thus prevents access to the machine's RDP.

And we all assume the host/target machine has an existing User Profile with proper authorization to remotely connection.

nasserd:

Domain setting are all correct. Users able to use the machine with no issues EXCEPT when trying to connect remotely to it. It also has nothing to do with the VPN connection since I'm trying to use it internally on my LAn and the same issues happen.

Windows Firewall/ICS Service is running. It's setup as started and automatic just like any other machine.

The 'problem' machine has no issues connecting to other remote desktops. The problem is only when connections are coming into the machine.

The target machine is setup just like the other one's on my network which are working fine. Allow users to connect remotely to this computer is checked and the user is setup as someone who can connect to it.

I also tried removing all the windows updates that were loaded, re-downloaded and installed them. Problem is that SP3 was not an option to remove.

My only idea right now is to do a windows repair with a SP2 disk and then re-run all the updates in the hopes it corrects itself.

if you are able to telnet successfully, then the issue is likely NOT firewall, or client configuration.

have you checked Event Viewer on the computer you are trying to connect to (to see if it's logging a reason for failing to allow the connection)?

in my opinion, this issue is at the RDP layer itself... not firewall, not network.  telnet proves that.

Tries a windows repair and still having the same problem.

Any other ideas would be appreciated.

I had an issue once like this and found later that there was a web-content filter installed on the machine that was blocking it. I know this is redundant but take a look at any other installed software that might be hindering it.. ie:zone alarm, Norton and or what ever Anti-Virus software you have installed.
Jacob