Your system administrator does not allow the use of saved credentials to log on to the remote computer

Solution 1:

If you don't want to change local or server side GPOs:

Go to Control Panel -> Credential Manager on the local computer you are trying to connect from.
You will see three sections:

  1. Windows Credentials
  2. Certificate-Based Credentials
  3. Generic Credentials

Remove the credentials from Windows Credentials and add it to Generic Credentials.

Solution 2:

Here is a link on how to accomplish this:

Update 4 setting in the group policy editor in Windows 7.

This security measure could frustrating when you connect and disconnect a lot to the same (or many) terminal server. To get rid of it and to be able to use saved credentials in this situation you need to configure the following:

Go to Start -> type: gpedit.msc -> in the console configure the following:

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Enable the each shown policy and then click on the “Show” button to get to the server list and add TERMSRV/* (or alternatively just *) to the server. In my case it’s ‘*’ which indicates that cached credentials will be allowed to all servers.

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The last thing to do is refreshing policy. To do that just go to command line (run as administrator) and type: gpupdate /force

That’s it. Now you can connect to your terminal servers by just clicking on .rdp files.