"The RDP Protocol Component "DATA ENCRYPTION" Detected an Error..." error message

After you install Windows 2000 Security Rollup Package 1 (SRP1), Terminal Services clients may not be able to connect to the Terminal Services server. You may also experience this problem when you use Remote Desktop Web Connection on a Windows XP Professional computer to connect to a Terminal Services server. When this problem occurs, event ID 50 is recorded in the system event log: For additional information, click the following article number to view the article in the Microsoft Knowledge Base: The Terminal Services client may also receive the following error message during a connection attempt:

A potential race condition between the Icaapi.dll and Rdpwsx.dll dynamic-link libraries (DLLs) may cause the private certificate key on the Terminal Services server not to be synchronized.

Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:
To resolve this issue, follow these steps:

1. Start Registry Editor.
2. Locate and then click the following registry subkey:
   HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\TermService\Parameters
3. Under this registry subkey, delete the following values:
   • Certificate
   • X509 Certificate
   • X509 Certificate ID
4. Quit Registry Editor, and then restart the server.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.