mstsc.exe (RDP) Starts but gives an error after logging on

Question

I hope I've found the right place for this question. It's a long question, and has a little bit of a background I'd like to cover. The question, or issue, I'm having will become obvious. I think it is related to a problem I am having with IE9, so I will describe that first,

I support a number of users, and we just upgraded a PC we had from Vista to Windows 7 (32-bit) and gave this PC to a new user. This was a couple of weeks ago

My boss did the actual upgrade, but reported no problems connecting online.

Now when I brought the PC to the new users desk and hooked it up, I started having errors access high graphic content sites with IE9, though I did not have the same problem using Firefox. I asked the user to use Firefox until I found a solution, and but so far have not had the opportunity to research it.

Now, this user has to connect to a remote site via a gateway use the builtin Remote DeskTop Client. When she starts MCTSC.exe it starts just fine and prompts for credentials. After entering them in a connection is established and the remote desktop is diplayed on her screen.

However, after about half a minute, an error appears. It only says Mstcs.exe has terminated abnormally. I don't have a screen shot of it, but the module reporting the error is the C++ Runtime Library.

I also was able to extract this from the event log which appears to be related (Compter name was changed to protect the innocent):

Log Name:      Microsoft-Windows-TerminalServices-LocalSessionManager/Operational
Source:        Microsoft-Windows-TerminalServices-LocalSessionManager
Date:          12/18/2012 11:17:50 AM
Event ID:      17
Task Category: None
Level:         Error
Keywords:      
User:          SYSTEM
Computer:      Accounting-PC.GCPMS.local
Description:
Remote Desktop Service start failed. The relevant status code was 0x800706b5.

Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-TerminalServices-LocalSessionManager" Guid="{5D896912-022D-40AA-A3A8-4FA5515C76D7}" />
    <EventID>17</EventID>
    <Version>0</Version>
    <Level>2</Level>
    <Task>0</Task>
    <Opcode>0</Opcode>
    <Keywords>0x1000000000000000</Keywords>
    <TimeCreated SystemTime="2012-12-18T17:17:50.898200000Z" />
    <EventRecordID>123</EventRecordID>
    <Correlation />
    <Execution ProcessID="532" ThreadID="812" />
    <Channel>Microsoft-Windows-TerminalServices-LocalSessionManager/Operational</Channel>
    <Computer>{PC}.{Domain}.local</Computer>
    <Security UserID="S-1-5-18" />
  </System>
  <UserData>
    <EventXML xmlns:auto-ns3="http://schemas.microsoft.com/win/2004/08/events" xmlns="Event_NS">
      <Param1>0x800706b5</Param1>
    </EventXML>
  </UserData>
</Event>

I cannot figure out what to do, but I am leaning toward copying Mstcs.exe and a the RDP files with a set from another similar installation.

I cannot find a repair for this, nor a download to reinstall it, much less find a way to remove it in order to reinstall it. I'm not sure what else to do. I tried manually starting the service, but it still did not stay connected.

Please note: When the error appears in RDP, if I ignore the message, I can still use the remote desktop as if there wasn't a problem. I haven't tried interacting with the local machine, but the RD stays up and active until I click on OK from the error message box. Then RDP shuts down.

I've spent at least an hour browsing the tech boards looking for a solution, but haven't found any that applies to me. Your help is needed and appreciated.

Thanks.

Marshall