I recently install Windows XP Service Pack 3 on my system and, while tinkering decided to have a go at using Remote Desktop. Upon trying to connect the RDP connection dialog simply tried to connect and then dropped out with no error message at all.
I investigated on the target RDP server and found the following error:
Event Type: Information
Event Source: Application Popup
Event Category: None
Event ID: 26
Date: 21/05/2008
Time: 10:10:53
User: N/A
Computer: LEWISDescription:
Application popup: : \SystemRoot\System32\RDPDD.dll failed to load
After a quick Google search I discovered a few other people with similar problems and all related to the nVidia 175.16 drivers which I had installed. I’ve uninstalled the 175.16 drivers now and rolled back to the older 169.x drivers. All seems to be well now.