to fix this, go to services.msc -> terminal services -> right click -> properties -> log on tab there's the hardware profiles on the bottom. for me, I selected the only one listed -- undocked profile -- and clicked enable. This allowed me to start the service. I hope this helps! I've also added both kelly's fixes to the registry -- fix for fast user switching (34) and fix for terminal services(167). Neither of them fixed the problem as I tested afterwords and I was still unable to start terminal services. However, perhaps they allowed me to enable the hardware profile. I'm not sure what would happen if I reverted to my previous registry and attempted the same above-mentioned process. reg files are here --> http://www.kellys-korner-xp.com/xp_tweaks.htm