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RDP Connection Issues from Windows 7 Computers to Windows Server 2008 R2

I am having a strange problem and I am having trouble figuring it out.  We have a Windows 2008 R2 Server that will not accept RDP connections from Vista, Windows 7, Windows 8, or other Server 2008 computers/servers.  This server is setup for Terminal Services and also its own licensing server but thats it.  It is a virtual server in a domain environment that is all new.
  When I adjust the security layer from the default 'Negotiate' to 'RDP Security Layer', I am able to access the server regardless of the OS that I am RDPing in from.  Note, that I am able to reach the server regardless of the security layer settings from a Windows XP workstation with the latest RDP client (7.0).  When connecting in from a non-Windows XP computer with the default security layer of 'Negotiate', I am prompted for credentials before I even connect into the Terminal Server.  Now this is where I am at a loss, when entering ANY domain user credentials that I am sure have access to the Terminal Server the credentials are rejected.  If I use a LOCAL user, I am able to access the server.  Any thoughts?
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SebastianAbbinanti
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In the local machine's "Users Group", and Domain Users - if you want everyone to get in, or the individual users, or groups you want access to the Terminal Server.

Thanks,
S.
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ASKER

Can you please clarify or rephrase your answer Sebastian?

Thank You
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SebastianAbbinanti
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