Server 2003 and Data Encryption Error

Hello All,

Have a windows 2003 Server with plenty of terminal licenses.
Mix of Desktops and Wyse Terminals.

Server is newley installed.

All RDP sessions from a desktop are able to connect without a problem.

If you connect via a wyse terminal.  User can log in for a little (no specific time) and then gets kicked out.  The following error shows up in even viewer.

The RDP protocol component "DATA ENCRYPTION" detected an error in the protocol stream and has disconnected the client.

Have read the solutions on here and microsofts website ("The RDP Protocol Component "DATA ENCRYPTION" Detected an Error..." error message)

I have tried the following registry edit solution.  
1. Start Registry Editor.
2. Locate and then click the following registry subkey:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\TermService\Parameters
3. Under this registry subkey, delete the following values:
• Certificate
• X509 Certificate
• X509 Certificate ID

If you delete the above they just reappear.  If you delete just the values NO ONE can login via RPD/Terminal services.
Then have to restore registry for them to access.
 
4. Quit Registry Editor, and then restart the server.


HELP HELP.

So question is why are users via RDP on a desktop not having a problem, but wyse terminals getting kicked off and the Data Encryption error appears?  Anyone have a solution to resolve this problem.

If more details are needed let me know.
goldmantechologyAsked:
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itforallCommented:
give this a try
go to TS Configuration tool
click Connections folder, in right pane right click the RDP-tcp link and select properties
change encryption level to client compatible and see if this works
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Windows Server 2003

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