Terminal Services clients may not be able to connect to a Windows 2000-based computer that is running Terminal Services.
When you use the Terminal Services Configuration snap-in (Tscc.msc), the transport (RDP-Tcp) appears to be present and working. However, when you view the transport by using Terminal Services Manager (Tsadmin.exe), the RDP-TCP listener is reported as "Down 65536."
This problem can occur if the server has been booted by using the Last Known Good Configuration option more than once. When the server has been booted into the last known good configuration more than once, the
registry key is deleted. However, the following registry value is hard-coded to use the
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:
322756 How to back up and restore the registry in Windows
To resolve this problem, obtain the latest service pack for Windows 2000. For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
260910 How to Obtain the Latest Windows 2000 Service Pack