RDP Connections fail after Microsoft Updates installed

On March 10 Microsoft released updates that cause issues with Remote Desktop Connections  to Terminal Servers and Outlook Connections to Microsoft Mail Servers. Symptoms are:

• RDP connections fail immediately when using Windows Vista, Windows 7, Windows 8 with the error: "The credentials used to connect did not work. Please enter new credentials."
• RDP connections work normally when using Windows XP because Windows XP support has ended and the updates were not installed.
• RDP connections from non-Windows operating systems like Apple MAC work normally.
• Outlook connections fail and continuously ask for credentials with the error: "Cannot open your default e-mail folders. You do not have permissions."

Buggy updates are: (you will need a Microsoft Account to follow the links)

https://support.microsoft.com/kb/3046049
https://support.microsoft.com/kb/3039976
http://support.microsoft.com/kb/3002657
http://support.microsoft.com/kb/3035132

To fix the RDP issue the updates should be uninstalled from any computer affected by the issue including Terminal Servers and Microsoft Mail Servers.

Please note that the updates are released to fix vulnerabilities and security issues in Windows. Uninstalling updates opens vulnerabilities and security issues in Windows and should only be uninstalled if absolutely necessary.

The process to uninstall updates is similar on Windows Vista, Windows 7, Windows 8, Server 2008, Server 2012.

1) Search for Windows Update

2) Click View Update History

3) Click on Installed Updates.

4) All installed updates are shown.

5) Enter the KB article you want to find in the search window in the format KB3046049

6) Right-click on the KB article and select Uninstall

The update will be uninstalled. You will be prompted to restart the computer after each uninstall but you can uninstall multiple updates before restarting.