Administrative Remote Desktop to Server 2003 fails with Access Denied

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Administrative Remote Desktop to Server 2003 fails with Access Denied

Using remote desktop and attempting to login to a Domain Member Server (running Windows 2003 Enterprise R2, fully patched, with Remote Desktop enabled with default config) using the Domain Administrator account (in the root domain of a single domain forest) I get an error that reads
"The system cannot log you on due to the following error: Access is denied. Please try again or consult your system administrator." after proper authentication is passed to the box in the RDC window. There are no active RDP connections to the server.
The server was just recently built, and is currently not in production. The Remote Desktop to the server worked initially, but quite recently and suddenly stopped working. As far as I can ascertain from all who had hands on the server, no one changed anything, nor did they apply any patches in the time between it working and not working.
The server is just running IIS and has a DFS root on it.
The server is accessible and fully functional on the network, only Remote Desktop is problematic. An RDP connection can be established with the server, but after proper and confirmed credentials are passed to the RDC connection it gives the error.

I've googled this but found nothing that speaks of this situation.
Does anyone have any insight or solution?
I would rather not burn an incident with MS.

Thank's in advance,
Adam Murphy