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I'm working with a standalone Windows 2003 R2 server. I'm testing out MS Terminal Services role, and after installing the role, I was unable to login to the computer using Remote Desktop. So I added Administrator user and 1 more user to the Remote Desktop Users builtin group. However I still got a "unable to login" error when trying to login via Remote Desktop.

So I decided to check the Group policy. Remember, this server is standalone and not part of a domain. I checked under Local Security Policy "Allow users to login via Terminal SErvices" and it lists my "Remote Desktop Users" group. However when I ran Resultant Set of Policy (rsop.msc), it says that the policy is not defined (EDIT1: in the "Source GPO" column, it is blank in this window).

So my question is, once I have the resultant set of policy showing, how do I "trace" or "debug" why/how a certain policy is undefined.

UPDATE1: When I try to activate the Terminal License Server, it also doesn't proceed further. I just stay at the Terminal License Server window. Don't know if its related.

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Check that your administrator password is not set to [blank]. Also when you try to login, do you get any errors? Check the event log, it'll probably be under security, but check them all to get a better idea what's going on. – Nixphoe Jun 8 '11 at 21:47
I don't remember if changing the membership of the Remote Desktop Users group or changing the local policy requires a reboot or not, but have you tried rebooting the server. – joeqwerty Jun 8 '11 at 23:49
@Nixphoe, nope. my Administrator password is set. I'll check the event log. – Archit Baweja Jun 9 '11 at 13:03
@joeqwerty yup I have restarted the server a couple times. – Archit Baweja Jun 9 '11 at 13:03
@Nixphoe, just checked the event log. There are no failures/warnings in the security log or system log regarding the terminal server. – Archit Baweja Jun 9 '11 at 18:45
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