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RDP over HTTP error - The connection to the Microsoft Exchange Server is unavailable

The error above appears after requesting the user's password.  When running rpcdiag it never seems to get past connect to directory.  I have done everything I can find in the other posts outlining how to setup RPC.  RWW works fine so it's not a port issue (from what I've read).  The user does have access to RWW and Outlook Web.

When I try a straight login through https://mydomain.com/rpc I don't get any certificate errors but I do get "HTTP Error 401.3 - Unauthorized: Access is denied due to an ACL set on the requested resource." after the third try logging in.

Here are the variables so that we can confirm that I have everything correct:
work.mycompany.com = exchange server
work.mycompany.com is listed on certificate
internal domain is mycompany.local
servername is a variation of mycompany

I  have been entering the username as mycompany\user.

Please help!
Chris
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Forgot the most important part:

Server: SBS 2003 R2 with Exchange 2003 - fully updated.  I installed the Exchange updates that came with R2 but have not installed ISA yet.

Client: XP Home SP2 with Outlook 2003 - Office 2003 SP1 is installed.  Client PC is not on the domain and I'm trying to avoid using VPN...

Thanks in advance!
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DanKoster
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Here's what I did:

DanKoster - you get 100 points for keeping me from continuing to attempt to diagnose the 401.3 error.

susssaws - "Did you use the document which is on the /remote page? > using outlook via the internet???" - This was the answer.  The document in RWW for using Outlook via the internet actually gives the exact addresses & names as they need to be typed in.  Prior to reading this document all of the directions that I found just said "srevername" with I took as servername not servername.mycompany.local which in the end was the problem.

Thank you for the help!
- Chris