Question : Remote Desktop Connection error: The client could not connect to the remote computer.  Remote connections might not be enabled or the computer might be too busy to accept new connections.

Hi.  I have two servers that I maintain on a network at work.  One is running Windows Firewall, the other is not.  I have Remote Desktop sharing enabled on both servers.  My workstation is on a different network than these two servers (going through 2 firewalls -- one for each network).  Both servers are running Windows Server 2003.  My workstation is running Windows XP Professional.  I am able to connect using Remote Desktop Connection to the server that is not running Windows Firewall just fine.  However, I have not been able to make a connection to the server that does have Windows Firewall running.  Every time I have tried, I always get the following error:
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Remote Desktop Disconnected
The client could not connect to the remote computer.
Remote connections might not be enabled or the computer might be too busy to accept new connections.  It is also possible that network problems are preventing your connection.
Please try connecting again later.  If the problem continues to occur, contact your administrator.
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On both servers, I have the following settings for Remote Desktop:
"Enable remote desktop on this computer" is CHECKED.
My username has been added to the list "Select Remote Users"

On the server with Windows Firewall, I have the following exception:
Remote Desktop: CHECKED is TCP 3389, and Scope is set to Any

If I turn OFF the Windows Firewall, I STILL get the same error!!

Does anyone have any suggestions for what might be causing this?
Thank you for your time and help!

Answer : Remote Desktop Connection error: The client could not connect to the remote computer.  Remote connections might not be enabled or the computer might be too busy to accept new connections.

sah18,
I did a little more digging:

The following is a partial excerpt concerning not being able to start terminl services due to licensing server issues. Only the items I thought were relavent are included. A couple of the "things to check" may apply here especially 3rd & 4th items. The full article is at:
http://support.microsoft.com/default.aspx?scid=kb;en-us;258021&sd=tech
The article refers to Server2000. I am assuming that explains the differences. I have made some notes marked [Rob: ]
 
This problem may occur if the RDP-tcp listener was not initialized or if the Terminal device driver is not started. You may have to verify that the license key is correct.

RESOLUTION

WARNING: If you use Registry Editor incorrectly, you may cause serious problems that may require you to reinstall your operating system. Microsoft cannot guarantee that you can solve problems that result from using Registry Editor incorrectly. Use Registry Editor at your own risk.

To resolve this problem, first determine the cause of the problem by using the following list, and then follow the applicable steps:
- The RDP-tcp connection may have to be reset. To reset the RDP-tcp connection in the Terminal Services Configuration management console, right-click the connection, and then click Disable. Confirm the changes when you are prompted to do so. Repeat the process, and then click Enable. [Rob: In 2003 I had a reset option not disable/enable]      
- The RDP-tcp connection may be corrupted. Re-create the RDP-tcp connection in the Terminal Services Configuration management console. To re-create the connection, delete the connection, and then re-create it. [Rob: could not find this option in 2003]
- The Terminal device driver files may be corrupted or missing. Verify the existence of the Termdd.sys and Rdpwd.sys files in the %SystemRoot%\Sytem32\Drivers folder. Verify that the Rdpdd.dll and Rdpwsx.dll files are located in the %SystemRoot%\Sytem32 folder.      
- The TermDD service may be disabled. Open the registry and locate the following key:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\TermDD
Check the data setting for the Start value, which should be 2. If the value is set to 4, the driver has been disabled. Set the value to 2, and then restart the server computer. [Rob: I checeked 2 2003 servers running only remote desktop (1 std & 1 SBS) and 1 Termanal server and all were set to 1]