I am running Windows 2008 x32 server standard SP2 (non-R2) as a TS Terminal Server with all current Windows updates. I have identified a problem that occurs when a user attempts to connect from Windows 7 with KB2592687 installed. If KB2592687 is uninstalled the problem no longer occurs.
After the connection attempt is made from a Windows 7 client with KB2592687, that and all new client connections are refused. All users will be unable to log in as if they had typed the incorrect password and they are prompted for the password over and over. Any active users will remain unaffected unless they allow their system to idle and are prompted for their password.
There are no errors logged in the event log and all services are running. The Security audit logs show audit success, exactly as if the user successfully logged on.
I have tried restarting many services while this condition existed, but the only know resolution to this is to restart the server. I can reproduce this behavior over and over.
