Network Level Authentication Issues with Sp3

[fizban2]

Running into a problem with an SP3 Xp machine trying to connect to Win 2008 machines. NLA is turned on for the server but i can getting connectivity errors with checks of certificates. If i reboot my machine, i can rdp once to a remote machine and can stay connected as long as i don't close that session. if the session is closed though i cannot connect again, an Event ID 8 was raised but according to MS article 317541 i unchecked the root cert check, now the same error is raised but no event is added to the App log. any hints? (also i followed 951608 to enabled the CredSSP functionality in SP3)