"The specified domain either does not exist or could not be contacted" when trying to add domain users to Remote Desktop Users group

I have one Windows Server 2008 SP2 and one Windows Server 2008 R2 SP1 running in Hyper-V.
I ran dcpromo and set up a separate domain on each server.
I created two domain users in each of the domains.
I want these two users to be able to use RDP to connect to each server.

When I try to add them to Remote Desktop Users, I get an error stating:
"The specified domain either does not exist or could not be contacted"

Both servers have DNS server role installed.

What could be the issue here?
proteus-IVAsked:
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dhoffman_98Commented:
1. Where are each domain hosting their DNS records? If domain A can only see DNS for domain A, then it won't be able to find a DC in domain B. You would want to add conditional forwarders on domain A's DNS servers so that references to domain B point to domain B's DNS servers.

2. Do you have a trust set up between the domains? If you are connecting from A to B, then A is the trusted domain and B is the trusting domain. The trusting domain would trust users coming from trusted domain to allow them to access local resources. (Or create a two-way trust).
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proteus-IVAuthor Commented:
Each domain is intended to function separately from the other.
They will be used for two different applications.
So, there is no need to establish trust between them or any kind of connecivity between the two.

The issue is occuring independently on both servers, on each domain.
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dhoffman_98Commented:
OK, help me understand and make this a little more clear...

You have a user in Domain A, and want that user to be able to RDP to a machine in Domain B?
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proteus-IVAuthor Commented:
No, User in Domain A needs to RDP to DC for Domain A.
User in Domain B needs to RDP to DC for Domain B.
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dhoffman_98Commented:
When you are attempting to add the users to the remote desktop users group, where are you doing that? Are you doing it on the domain controller or from another client workstation?

Either way, on the machine where you are trying to add the users, what do you have that local machine pointing to for DNS resolution? Is it pointing to the DNS server for that particular domain?
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proteus-IVAuthor Commented:
I am trying to do that on a DC.
DNS resolution is pointing to 127.0.0.1, since the DNS role is set-up.
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dhoffman_98Commented:
Well, not that it will definitely solve your problem, but point your DNS to another DC as the primary, and then itself as a secondary.... And don't use 127.0.0.1, but use its real IP address.
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proteus-IVAuthor Commented:
I tried setting up DNS this way, but the error persists.
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proteus-IVAuthor Commented:
Resetting DNS on both servers cleared the error.
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proteus-IVAuthor Commented:
Only solution.
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Windows Server 2008

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