Remote Desktop Connection Closes After Logon
Problem:
You connect to your Windows 2003 server via Remote Desktop and you are greeted with the logon prompt. If you enter the wrong password, it asks you to logon again. However, if you enter the correct password the connection immediately closes. You repeat this all day long with the same result.
Solution:
The video driver on your server is at fault. Searching the web leads to many suggestions regarding Nvidia drivers. However, the problem is also known to occur with ATI drivers.
Upgrade your video drivers to the current version and see what happens.
More info:
http://support.microsoft.com/?kbid=840655