Windows 7: Remote Desktop Client 6.1 Cannot connect to remote computer

We have several remote systems that can all connect fine. I am having an issue with one box. It is a windows 7 home premium machine with netgear wireless nic. When I open mstsc to connect to a remote machine I put in the ip address and click on connect. I receive an immediate failure with the text "This computer can't connect to the remote computer. Try connecting again...blah blah"

I have a server 2008 r2 with Network level authentication enabled. I have 8 other systems that are hardwired, at different geographic locations and all connect fine.

I have not made any changes on the server side since this problem seems to be local to this client only.

On the client I have made the following changes/observations. I have disabled the firewall, cleared the remote desktop cache, remove the MRU entries from the registry, verified that port 3389 is open via telnet. I have been bashing my head for days trying to figure out why this one box is not working. The problem occurs for every user on the box including the admin.

I don't receive the box that prompts for warning if there is a server authentication issue but I think that is because I selected ignore at some point and said yes to continue. I'm not sure where that cache resides to delete that selection. I'm not sure if that is where my problem lies or not. Can anyone please assist?

Welcome to SF,

From the Remote computer please try this, if unsuccessful please post back.
Click on Start and type secpol.msc. Then go to Local Security Policy=> Local Policies=> User Rights Assigment=> Choose Allow Log on Locally and select the User or Group that needs to access this computer remotely. Also select Allow Logon to Remote Desktop Services (if you have RDS or Terminal Services configured in your Win08 Server). Try to remote connect after.