Windows 7 Pro users cannot connect to RDS terminal server remotely

We just setup a new RDS farm which is displaying applications for our users. Users first login to a web page (rds.domain.com) which they can now select the application they need. From there, the user constantly gets prompted credentials without success. I have given rights to all areas that I know of, but maybe I missed something? I also noticed that once they connect to VPN, it works but we need it to work without (one user cannot remote in, with or without VPN). Windows 8 desktops work without issues, so it seems its a Windows 7 issue?

I'm sure there is more that needs to be said, so please ask and I will provide any additional information.
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TechneutAsked:
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Emmanuel AdebayoGlobal Windows Infrastructure Engineer - ConsultantCommented:
I think this is a known issue with Microsoft and there is a fix for it. You will need to update the your Windows 7 with the hotfix from the link below

http://support.microsoft.com/kb/2524668
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TechneutAuthor Commented:
You might be right because after I updated the users to IE11 and the latest and greatest windows updates, everything seems  to work. The reason we didn't before is because the older software only allowed us to use IE9. Thanks for your response and I will give you credit as the answer.
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TechneutAuthor Commented:
The windows update was the culprit which I found out by updating to latest and greatest version, it worked.
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Windows Server 2012

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