TestUser account in the 'allow logon through terminal services' Local Security policy.New user account 'TestUser' is a member of the remote deskop users group and administrators group (have tested with just admin / Remote desktop users group only as well).Apparantly this did work one time and ever since then it hasnt worked (no way to confirm this).Items that we have confirmed at this point: We do get the same message when trying from To eliminate external access issues, we are trying to just RDP into localhost at this point. We are getting an 'Access is Denied' message when trying to RDP into a Windows Foundation Server 2008 R2 system. Here are my notes from the issue - just in case you are seeing a combination of problems. I also was thinking about resetting the machine account password with the netdom command but, didnt end up needing to. The following fatal alert was generated: 10.