Unable To Connect To The Windows 2003 WTS Server

Today, a user reported that she couldn’t connect to the Windows 2003 WTS server from her Windows 7 client.  She would get the below error:
 

 

The following steps were carried out to resolve the problem:

1.    Open Registry Editor (Start > Run > regedit).

2.    Navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\ and find MSLicensing folder.

3.    Right-click on the folder and select Delete..

4.    Reboot the computer.

5.    Start the Remote Desktop Client (Start > Run > mstsc) and run as local administrator to rebuild the deleted keys.

Subsequently, when the user tried to logon to the Windows 2003 WTS server from her Windows 7 client.  She would get another error:
 

 

The following events are observed to be logged on the Windows System Event log and Application Event log respectively:

Event ID 1041 – Autoreconnect failed to reconnect user to session because authentication failed. (0x0)

Event ID 5 – An error occurred while retrieving a digital certificate from the inserted smart card.  The keyset is not defined.

We restarted both the belowmentioned services on the Windows 2003 WTS server:

ActivCard Authentication Service

ActivCard Middleware Service

The user is able to logon to the WTS server successfully after that.