Unable to connect to from Windows 7 Desktop to Windows 2008 server - Credentials not working

Trying to connect from Windows 7 Remote Desktop to Windows 2008 Server but it refuses with following error:

"Your system administrator does not allow the use of saved credentials to logon to the remote computer computername/ipadress because its identity is not fully verified. Please enter new credentials. The logon attempt failed"

There is no trust relationship when connecting two machines from different domains. Windows uses NTLM authentication and in this case the default domain policy doesn't allow to use of saved credentials.

Please do the follwoing to resolve the issue.

  • On your local machine Open Windows command prompt type: gpedit.msc -> Press Enter -> a new window will popout
  • Go to Local Computer Policy –> Computer Configuration –> Administrative Templates –> System –> Credentials Delegation
  • Double Click on “Allow Delegating Saved Credentials with NTLM-only Server Authentication?
  • By default it will be “not configured?
  • You will see radio buttons -> Enable the policy
  • Click the “Show? button in the options window below and enter the value “TERMSRV/*?  (without quotes) into the list.
  • Click Apply button
  • Do the same thing for the following policies:

Allow Delegating Saved Credentials

Allow Delegating Default Credentials with NTLM-only Server Authentication

Allow Delegating Default Credentials

  • Close all windows
  • Open a command prompt and use “gpupdate /force? command to apply the policy directly

You must now be able to log in with the saved credentials.

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