Vista - Odd Remote desktop issue

I have an HTPC running Ultimate sp1 32bit on a domain. RDP has been working fine for a least a year until a few days ago.

I've developed a very strange issue with remote desktop connections. Any time I try to connect I get to the log on screen> Enter user/password> the the "welcome" message comes up> then "logging off"> back to log on screen. The remote access is set up to work w/o NLA.

I'm only having this issue on the HTPC all the other machines on my domain log in just fine. I've tried loggin in from 4 different computers(xp pro, Vista biz sp1 32, server 2k3, Mac 10.5.6 with MS RDC 2.0 client) on the domain, but I get the same result each time.

I'm able to see the networks share and log into the event viewer remotely, but RDP is not working right.

here's what is in the eventvwr after I try to logon via TS
Log Name: Application
Source: Desktop Window Manager
Date: 3/8/2009 3:09:22 PM
Event ID: 9009
Task Category: None
Level: Information
Keywords: Classic
User: N/A
Computer: HTPC.***.com
Description:
The Desktop Window Manager has exited with code (0x40010004)
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Desktop Window Manager" />
<EventID Qualifiers="16384">9009</EventID>
<Level>4</Level>
<Task>0</Task>
<Keywords>0x80000000000000</Keywords>
<TimeCreated SystemTime="2009-03-08T22:09:22.000Z" />
<EventRecordID>81453</EventRecordID>
<Channel>Application</Channel>
<Computer>HTPC.****.com</Computer>
<Security />
</System>
<EventData>
<Data>0x40010004</Data>
</EventData>
</Event>

Log Name: Application
Source: Microsoft-Windows-CertificateServicesClient
Date: 3/8/2009 3:09:16 PM
Event ID: 2
Task Category: None
Level: Information
Keywords:
User: ******
Computer: HTPC.******.com
Description:
Certificate Services Client has been stopped.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Microsoft-Windows-CertificateServicesClient" Guid="{73370bd6-85e5-430b-b60a-fea1285808a7}" />
<EventID>2</EventID>
<Version>0</Version>
<Level>4</Level>
<Task>0</Task>
<Opcode>0</Opcode>
<Keywords>0x8000000000000000</Keywords>
<TimeCreated SystemTime="2009-03-08T22:09:16.753Z" />
<EventRecordID>81452</EventRecordID>
<Correlation />
<Execution ProcessID="4068" ThreadID="1360" />
<Channel>Application</Channel>
<Computer>HTPC.*****.com</Computer>
<Security UserID="S-1-5-21-3769267361-2223447961-1639204970-1107" />
</System>
<EventData>
</EventData>
</Event>

Log Name: Application
Source: Microsoft-Windows-CertificateServicesClient
Date: 3/8/2009 3:09:16 PM
Event ID: 1
Task Category: None
Level: Information
Keywords:
User: ******
Computer: HTPC.*****.com
Description:
Certificate Services Client has been started successfully.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Microsoft-Windows-CertificateServicesClient" Guid="{73370bd6-85e5-430b-b60a-fea1285808a7}" />
<EventID>1</EventID>
<Version>0</Version>
<Level>4</Level>
<Task>0</Task>
<Opcode>0</Opcode>
<Keywords>0x8000000000000000</Keywords>
<TimeCreated SystemTime="2009-03-08T22:09:16.041Z" />
<EventRecordID>81451</EventRecordID>
<Correlation />
<Execution ProcessID="4068" ThreadID="5028" />
<Channel>Application</Channel>
<Computer>HTPC.******.com</Computer>
<Security UserID="S-1-5-21-3769267361-2223447961-1639204970-1107" />
</System>
<EventData>
</EventData>
</Event>

Log Name: Application
Source: Desktop Window Manager
Date: 3/8/2009 3:09:15 PM
Event ID: 9003
Task Category: None
Level: Information
Keywords: Classic
User: N/A
Computer: HTPC.*****.com
Description:
The Desktop Window Manager was unable to start because a composited theme is not in use
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Desktop Window Manager" />
<EventID Qualifiers="16384">9003</EventID>
<Level>4</Level>
<Task>0</Task>
<Keywords>0x80000000000000</Keywords>
<TimeCreated SystemTime="2009-03-08T22:09:15.000Z" />
<EventRecordID>81450</EventRecordID>
<Channel>Application</Channel>
<Computer>HTPC.*****.com</Computer>
<Security />
</System>
<EventData>
</EventData>
</Event>

Log Name: Application
Source: Microsoft-Windows-Winlogon
Date: 3/8/2009 3:09:15 PM
Event ID: 4101
Task Category: None
Level: Information
Keywords: Classic
User: N/A
Computer: HTPC.******.com
Description:
Windows license validated.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Microsoft-Windows-Winlogon" Guid="{DBE9B383-7CF3-4331-91CC-A3CB16A3B538}" EventSourceName="Winlogon" />
<EventID Qualifiers="16384">4101</EventID>
<Version>0</Version>
<Level>4</Level>
<Task>0</Task>
<Opcode>0</Opcode>
<Keywords>0x80000000000000</Keywords>
<TimeCreated SystemTime="2009-03-08T22:09:15.000Z" />
<EventRecordID>81449</EventRecordID>
<Correlation />
<Execution ProcessID="0" ThreadID="0" />
<Channel>Application</Channel>
<Computer>HTPC.*******.com</Computer>
<Security />
</System>
<EventData>
<Data>0x00000000</Data>
<Data>0x00000001</Data>
</EventData>
</Event>


I've got no idea what the solution could be. Any help would be apprecaited.

Thanks