On a Windows Vista-based computer, when you try to connect to a computer that is running Windows XP or Windows Server 2003 through a Remote Desktop Protocol (RDP) connection, the RDP connection fails. Also, you receive the following error message:

The security policy of your computer requires you to type a password on the Windows Security dialog box. However, the remote computer you want to connect to cannot recognize credentials supplied using the Windows Security dialog box. For assistance, contact your system administrator or technical support

This problem occurs when the Require trusted path for credential entry Group Policy setting is enabled on the Windows Vista-based computer.