Ok, I have racked my brain trying to figure this out and I'm out of ideas.
Issue - Random Windows 7 PC that has updated to RDP 8.0 gets this error when they try to connect to a server we have set up for them through a gateway. Only happens when the computer is updated to RDP8. Downgrading to RDP7.1 fixes the issue and they can connect just fine.
The issue only affect a very small number of computers. Most Windows 7 computers with RDP 8.0 can connect just fine. But right now, I am working with a client that has their own computers and domain (I have no control over) that are affected by this issue. This is not the only client I have run into with this issue as well.
This problem is essentially what is described here - http://www.examiner.com/article/fixing-an-error-occurred-on-the-remote-computer-with-remote-desktop-connection Except I would really like to know if there is a fix other than uninstalling RDP 8.