Brutis

Nvidia 175.16 drivers have the issue, I installed the 174.74 beta drivers and I can RDP fine now. Here is the link to the beta drivers for the time being until Nvidia fixes this RDP issue with their next release. http://www.nvidia.com/object/winxp_174.74.html

I've been struggling with this same issue the past few days after sp3 install. Lots of research and finally found out Nvidia is the problem. I had just done a fresh sp3 install just as you have and immediately downloaded nvidia's latest drivers. http://forums.nvidia.com/index.php?showtopic=67147 Thread with a lot of upset people. I am going to try and find a past version to see if I can get RDP working. Hope this helps. I knew it wasn't sp3 because I had just done another SP3 fresh install on another box of mine that I could rdp to fine. ATI card in it though. I registered on this forum because while researching the issue this post was close to the top on google with no answer. Here is your answer google.