Verification Failed: Unable to create a user session on the remote computer

Hi,

I am facing an issue with the verification process of the network suite- using TC v.10

I haved performed all the required steps to setup the network suite in master & slave.

When i try to Verify the connection, it gives "Verification Failed: Unable to create a user session on the remote computer."

I am using Windows 7 in the local system(Master)  and Windows Server 2008 R2 in the remote system(Slave).

I have Test Complete 10 installed in local and Test Execute 10 installed in remote.

I have performed all the below steps for setup.

1) I have administrator rights on the remote system and have access to the path where scripts are stored

2) Firewall is disabled in remote system

3) Test Complete Service is running in remote system

4) Added Test Execute & Test Complete Service in the exception list of programs which will be allowed through firewall(not required anyways if firewall is disabled)

5) In Advanced Firewall settings, New Inbound rule of allowing Test Complete ports 6020-6022 set.

6) Group policy modified at below points

  a) Disabled "Always prompt for password upon connection" in the GPL > Admistrative Templates>Windows Components>Remote Desktop Services > Remote Desktop Session host.

  b) Disabled "Require User Authentication for Remote connection by using Network Level Authentication"

But still i am getting Verification failed.

This issue occurs only when I change the Login Mode to either "Automatic (RDP Session)" or "Automatic (Console Session)". It works fine when Login Mode is set to Manual.

Please let me know what I might be missing.