ERROR: "Terminal Server session creation failed" after enabling "allow users to connect remotely to this computer" for RDP.
After reimaging my PC and installing all relevant Windows Updates (including SP3 and other updates), I now notice that I cannot get the terminal-server "allow users to connect remotely to this computer" functionality to work. I checked and do not see port 3389 listening (so terminal server service cannot start and nothing else is using its port). I noticed the following error in event viewer: Event Type: Error Event Source: TermService Event Category: None Event ID: 1036 Date: 12/28/2009 Time: 12:45:30 PM User: N/A Computer: LAPTOP Description: Terminal Server session creation failed. The relevant status code was 0xC0000034. For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp . The only info I see in web searches pertains to Windows Server (not XP), where Term Svc can be modified, but not on XP. I removed my desktop firewall, thinking it was perhaps blocking ports, and this did not help. I've also disabled Windows Firewall, which also did not help. Even though the port 3389 was not in use, I attempted to change that RDP port to 3390, but that also made no difference. Any ideas on what's preventing the Term Server Svc from working properly? Remote access to this PC is critical, and I really don't have to have to use VNC if I can avoid it.1 person needs an answerI do too
December 28th, 2009 11:03pm

Check this out and download the hotfixhttp://support.microsoft.com/kb/321624Goodluck
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January 16th, 2011 4:38pm

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