Can't remote access the server

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I can't use remote desktop from an XP workstation to access the SBS
2003 server. It says "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."

This may be a failure to authenticate as given in the details below.

Details and things I've tried:
Remote access is enabled on the server.
The router is not set to block this, in fact it is set to route this
request to the server.
This is all in-house (once I get that working I'll connect from
outside).
No other firewall settings on the server.
Port address is confirmed as default and has been confirmed with a
registry entry.
The workstation can remote control another workstation if I route it
there.
The server can remote control the workstation.
Terminal Services config shows one connection available, default
settings, full permission for admins, connection enabled.
I've logged onto the workstaion as an admin and use admin logon when
trying to connect to the server.
Terminal Services Manager if I look at This Computer|Server it says
"You could not be authenticated on this server". I'm logged on as
administrator. Not sure if this just reflects the fact that we have not
bought any extra licenses but I understand SBS2003 includes two allowed
logon sessions for administration. Maybe this failure to authenticate
is part of the problem but I could find no info on it.
The Manager also shows, if I go to All Servers it shows my domain under
it but no servers under the domain.
Both server and workstation have all updates.

I have tried to get an answer to this before and really need to get to
the bottom of it.

Thanks,
Tom

.

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