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XP SP3->Server 2k8 Authentication error code: 0x507

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Hi everyone,

I had a lab setup of 3 Server 2k8 RC0 Terminal servers. They functioned as my thinclient RemoteApp servers, and they did a fantastic job! So fantastic that I went ahead and purchased Server 2008 Enterprise Edition licenses. I setup my environment the same exact way I had set up my RC0 environment, but I have ran into unexpected errors. Long story short:

My XP SP3 computers (which have the 'latest' RDP client) cannot connect to my 2k8 servers. They simply throw back an "Authentication code error: 0x507." I did find the MS Knowledgebase page where it said to edit a couple registry keys which appended the data "tspkg" and "credssp.dll" to three different locations, then rebooted and has made no difference.

With the latest RDP Client, I can still connect to my 2003 servers without a problem. The one difference I've noticed is that when the RDP client connects to a Server 2008 TS, it asks for a username & password before going any further, unlike connecting to a 2003 server where it'll connect you to the server first then ask for the login credentials.

I'm stuck, and cannot get past this. School starts in a couple weeks and I need to find a workable solution to these issues. I've tried to go through as many RDP settings as possible on my Server 2008 TS and that has made no difference (accept all connections even from insecure clients, added my user group to the Remote Desktop system group...stuff like that)

I would love to hear what some people have to say, and would appreciate any feedback or ideas about this situation. Thank you!

-Mike Tucker 

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