When using Windows XP SP3 with remote desktop on a Windows Vista or Server 2008 computer that requires NLA or Network Level Authentication you might run into the following error:
"The remote computer requires Network Level Authentication, which your computer does not support. For assistance, contact your system administrator or technical support."
The problem arises because the Security Provider in Windows XP designed to handle NLA is turned off by default. Don't ask me why. The provider is called "CredSSP" and according to Microsoft here is what it does:
"CredSSP is a new Security Service Provider (SSP) that is available in Windows XP SP3 by using the Security Service Provider Interface (SSPI). CredSSP enables a program to use client-side SSP to delegate user credentials from the client computer to the target server. (The target server is accessed by using server-side SSP). Windows XP SP3 involves only the client-side SSP implementation. The client-side SSP implementation is currently being used by Remote Desktop Protocol (RDP) 6.1 Terminal Services (TS). However, the client-side SSP implementation can be used by any third-party program that is willing to use the client-side SSP to interact with programs that are running server-side SSP implementations in Windows Vista or in Windows Server 2008."
However, the good news is Microsoft also provides a very detailed process on how to turn on CredSSP. I have provided a link to the KB article that describes how to turn on CredSSP. Follow the process under "How to Turn on CredSSP" and the message should be resolved.
http://support.microsoft.com/kb/951608
-Brent