Service Pack 1 update on windows 7 64 bit caused remote desktop failure

I normally use remote desktop from a Windows 7 laptop to a Windows 7 desktop machine but few days ago it stopped working and it happened when both machines were updated to service pack 1. I am able to connect from Windows 7 Ultimate to Windows 7 Pro laptop but not connect in vice versa. There is also no error message in the event logs. So if anyone know how to solve this issue please let me know. Thanks

It was mentioned that due to a recent Windows Update this problem was happening. This update caused some RDP/Terminal problems. So to solve this issue you need to uninstall the below 3 security updates and see if it works for you or not:

KB2621440
KB2667402
KB2840149

Also, remember to hide them always when you are doing a Windows Update or else it will again get installed.

Even I faced this issue with the same behaviour some time ago. I am using 2 computers to connect to Windows 7 Pro and because of the problem I cannot connect now. On all computers, the RDC client asks for credentials and then tells me that the identity of the desktop cannot be verified and then nothing happens. I also do not get any error on the computer.

Can you try to update the display drivers on the remote or even all the computers. Just go to the official website of the display card manufacturer and download the latest graphics driver available and then install it in your pc according to your operating system. There are many online articles on RemoteFX which seems to have much information about the problem that you are facing.