Remote Desktop: Can Connect But Not Logon

I am setting up a Windows SBS2003 Domain and Remote Desktop for all the workstations. I can logon with no problems to all workstations and the server EXCEPT one. That system will connect via Remote Desktop but when I try to logon it will only let me logon remotely ONCE after reboot. After that I get the error message:

The request cannot be completed because the Terminal Connection is currently busy processing a connect operation.

Some is “hung” but I’m not sure what that is. The only thing different about this workstation is that is was previously used as the “server” in a peer2peer network. Any thoughts or links would be appreciated.