Username or Password is incorrect when logging into 2008r2 standard RDS sessions host

Hello there TechNet forums,
I recently finished setting up a Windows 2008r2 RDS sessions host.  The licensing server is a Windows Server 2012 server with 5 per user 2012 RDS licenses.  The Windows 2008r2 server is pointed to the 2012 server correctly.  
When I do a remote desktop connection from a third computer,  I am not able to log in.  I receive "Username or Password is incorrect."  The accounts are in the remote desktop users group (both in the domain and on the local group
for the server).  I have tried to use domain\username, \domain\username, \domain\username\. None work. I am able to log onto the console with the same username and password I am trying for a remote session.
I am unsure where to look moving forward.  Any suggestions are appreciated and welcome.  If you need more information, please let me know, I will provide what I can.

Hi,
Thank you for posting in Windows Server Forum.
Does this issue happens for single user or all users and on single machine? Did you try from other system?
What’s your client OS and RDP version? I suggest to have RDP v8.1 for better functionality. Also see whether you can ping the server.
In addition, for a try please disable firewall and check whether you can access the remote server. Also clear the server name from below registry on client machine, reboot and check the result.
HKEY_CURRENT_USER\Software\Microsoft\Terminal Server Client\
Additional information.
http://support.microsoft.com/kb/2477176
Hope it helps!
Thanks.
Dharmesh Solanki
TechNet Community Support

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