Remote desktop connection "The local policy of this system does not permit"

Remote desktop connection "The local policy of this system does not permit"

I have a Droid X now with 2.2. Currently I am using only the free version of Wyse PocketCloud sofware. I have two computers that I am testing. One is Windows 7 Professional on a 32-bit machine and with the basic settings, everything works perfectly.
The second machine is Windows XP Home edition, and I have created the settings so that a "regular" RDP connection works remotely outside the network.

However, when I try to connect over the android connection I get the error "The local policy of this system does not permit you to logon interactively". I have no idea how to add my Droid X to the users, or even if that is the issue.

I am very new at RDP settings, so any assistance would be great. Cracking this is one reason I'd purchase this software.