This behavior can occur if the account you are using to connect with has a null (blank) password. You cannot establish Remote Desktop connections when you are using an account with a null password.
You can disable blank password restrictions by using a policy. To locate and change this policy:
1. Click Start, point to Run, type gpedit.msc, and then click OK to start the Group Policy Editor.
2. Open Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options\Accounts: Limit local account use of blank passwords to console logon only.
3. Double-click Limit local account use of blank passwords to consol logon only.
4. Click Disabled, and then click OK.
5. Quit Group Policy Editor.
http://support.microsoft.com/default.aspx?scid=kb;en-us;303846
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