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Remote desktop greyed out

I have a freshly installed Windows 7 pro 64 bit machine who's remote desktop settings are greyed out. This is the only machine in the network that does this. I checked all the fancy group policy settings and whatever I adjust nothing works. It is also unclear to me why I should suddenly adjust them since it always has been working as intended. However windows claims that the settings are controlled by the SBS 2011 machine, which I'm pretty sure they're not. I also deleted fDenyTSConnections reg key, the options become not greyed out, but as you guessed it, the RPD still doesn't work.

If anyone has a solution before I send this PC and server to the moon, I'm all ears! Thanks.
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John
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However windows claims that the settings are controlled by the SBS 2011 machine

Since Windows 7 Pro RDP works, check the group policies again because that is the likely cause.

Try System File Checker:  SFC /SCANNOW from an Admin Command prompt. Restart and test. I don't think this is a likely solution.
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I checked the group policy many times on the client and server side. They are all set to not configured and setting them to allow doesn't work.
Perhaps the Windows Install went wrong.  Try running Windows 7 Repair install. For this you need the Windows 7 Pro DVD or a working recovery partition. Here is a Seven Forums Tutorial to assist.

http://www.sevenforums.com/tutorials/3413-repair-install.html
This is an HP machine, it came pre-installed with an image. I done like a million of these. Plus doing to installation again woul result in the customer killing me...
I am not sure what to say at this point (having used and service a LOT of client Windows 7 Pro machines). Properly operating, RDP will work.

So if it is not the image, it must be Group Policies.

Remove the computer from the domain (return to WORKGROUP). Does RDP return?
I removed it from the domain, still doesn't work.
I suggest you get proper recovery media from HP and reimage the computer. You could spend forever in a black hole
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