I have observed the same exact problems.
Could not remoted desktop
WINDOWS XP REMOTE DESKTOP SECURITY SETTINGS FOR DOMAIN
CANNOT USE WINDOWS XP REMOTE DESKTOP
So I found this website which pointed the problem to the ATI driver.
YEs my first attempt was to lower the hardware acceleration down to NONE. and it did work. But I wanted the concrete solution so I downloaded the driver from the ATI Website. TO NOTE: The driver on the DELL Support website had problem installing so I went to the source.
Also to note: ATI has a different name for this card: It is called a catalyst.
http://game.amd.com/us-en/drivers_catalyst.aspx
Other reference material:
can not remote desktop
WINDOWS XP REMOTE DESKTOP SECURITY SETTINGS FOR DOMAIN
CANNOT USE WINDOWS XP REMOTE DESKTOP
I attempted to install windows settings> network monitoring and simple tcp/ip services
http://www.helpwithwindows.com/WindowsXP/howto-14.html
VIDEO CARD (DEFAULT DRIVER WHich is installeD)
ATI RADEON HD 2400 XT
DRIVER DATE: 9/14/2007
VERSION: 8.420.0
WINDOWS XP SERVICE PACK SP3
1st CORRECTION IS TO (and the way it should be done):
Install the latest driver from ATI website
http://game.amd.com/us-en/drivers_catalyst.aspx
R:\TechData\STORAGE\DRIVERS\VIDEO\ati DELL OPTIPLEX 330 ATI RADEON HD 2400 XT _WINDOW XP 20081111
WINDOWS XP DRIVER WAS INSTALLED AND WORKS:
R:\TechData\STORAGE\DRIVERS\VIDEO\ati DELL OPTIPLEX 330 ATI RADEON HD 2400 XT _WINDOW XP 20081111\WindowsXP32bit
now notice: the driver description is switched:
ATI RADEON HD 2400PRO
9/23/2008
8.541.0.0
this website is where I found the problem that it was the video driver:
http://www.eggheadcafe.com/software/aspnet/29345592/rdpdddll-failed-to-load.aspx
2nd CORRECTION IS TO (temporary fix):
RIGHT CLICK THE SCREEN>PROPERTIES
SETTINGS
ADVANCED
TROUBLESHOOT
HARDWARE ACCELERATION
..BY DEFAULT IT IS SET TO FULL
.....PUT the lever ON NONE
COMPUTER MODEL:
DELL OPTIPLEX 330
THE EVENT LOGS ON THE COMPUTER IN WHICH I WAS TRYING TO GET ON HAD THESE EVENTS:
APPLICATION POPUP: \SYSTEMROOT\SYSTEM32\RDPDD.DLL failed to load
Thanks,
Doug Lubey of Louisiana
www.douglubey.com