RDP connection to Remote Desktop server running Windows Server 2008 R2 may fail with message 'The Local Security Authority cannot be contacted'.

RDP connection to Remote Desktop server running Windows Server 2008 R2 may fail with message 'The Local Security Authority cannot be contacted'.: the remote computer that was reached is not the one you specified

To resolve the issue, change the remote desktop security on the RD server to RDP Security Layer to allow a secure connection using Remote Desktop Protocol encryption. Below are the steps:

1. Navigate to Start > Administrative Tools > Remote Desktop Services > Remote Desktop Session Host Configuration.
2. With RD Session Host Configuration selected view under Connections.
3. Right click RDP Listener with connection type Microsoft RDP 6.1 and choose Properties.
4. In general tab of properties dialog box under Security, select RDP Security Layer as the Security Layer.
5. Click OK.