User having problem changing password on Windows 2008 R2 via remote desktop win7

I have a remote user in another building with OS 7 remote destkop to Windows 2008 R2 Server.  The users account is set to change password on first login.  when the users trys to change his pw he gets error "Configuration information could not be
read from domain controller, either because the machine is unavailable, or access has been denied.
We are not using domain controller on the Windows 2008 R2 Server it is set to workgroup.
Any help ASAP would be greatly appricated.
Thanks,
Rob Jung

Here is one of the event logs from when the user tried to logging (and change password on the first login):
Log Name:      Security
Source:        Microsoft-Windows-Security-Auditing
Date:          10/13/2011 5:09:11 PM
Event ID:      4625
Task Category: Logon
Level:         Information
Keywords:      Audit Failure
User:          N/A
Computer:      win007.#***.net
Description:
An account failed to log on.
Subject:
 Security ID:  SYSTEM
 Account Name:  WIN9$
 Account Domain:  ***
 Logon ID:  0x3e7
Logon Type:   2
Account For Which Logon Failed:
 Security ID:  NULL SID
 Account Name:  Administrator
 Account Domain:  WIN007
Failure Information:
 Failure Reason:  Unknown user name or bad password.
 Status:   0xc000006d
 Sub Status:  0xc000006a
Process Information:
 Caller Process ID: 0x254
 Caller Process Name: C:\Windows\System32\winlogon.exe
Network Information:
 Workstation Name: WIN007
 Source Network Address: 127.
 Source Port:  0
Detailed Authentication Information:
 Logon Process:  User32
 Authentication Package: Negotiate
 Transited Services: -
 Package Name (NTLM only): -
 Key Length:  0
This event is generated when a logon request fails. It is generated on the computer where access was attempted.
The Subject fields indicate the account on the local system which requested the logon. This is most commonly a service such as the Server service, or a local process such as Winlogon.exe or Services.exe.
The Logon Type field indicates the kind of logon that was requested. The most common types are 2 (interactive) and 3 (network).
The Process Information fields indicate which account and process on the system requested the logon.
The Network Information fields indicate where a remote logon request originated. Workstation name is not always available and may be left blank in some cases.
The authentication information fields provide detailed information about this specific logon request.
 - Transited services indicate which intermediate services have participated in this logon request.
 - Package name indicates which sub-protocol was used among the NTLM protocols.
 - Key length indicates the length of the generated session key. This will be 0 if no session key was requested.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-Security-Auditing" Guid="{*******}" />
    <EventID>4625</EventID>
    <Version>0</Version>
    <Level>0</Level>
    <Task>12544</Task>
Rob Jung ADRWeb

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