Windows Vista: Remote Desktop Problems

Remote Desktop Problems

First off, this connection used to work. The only things that have changed on my setup (since I last remember using it) is SP3 on XP and SP1 on Vista being installed. I don't think it's SP3 since I remember after that was installed I no longer got the warning message normally associated with connecting across platforms (Vista to XP).
So here's the setup. Laptop (Vista HOme Prem SP1) -> Wireless N -> Linksys WRT300N -> Desktop (XP MCE SP3)
Remote connection is enabled on the desktop and my profile is set as an authorized user. The remote connections control on the laptop can see the desktop and my profile. When I input my credentials and hit connect, the connect button goes grey, there is some small animation of the bar at the top of the remote connection control, then it kind of blinks like it's refreshing and the connect button is back. But nothing happens. I'm not getting any messages like "unable to connect" or "can't find terminal server". It just will not connect to my desktop.
I am running the firewall on my router and McAfee firewall software on both machines. No Windows firewall enabled on either. The connection has previously worked with the firewalls on and I have tested this with firewalls up and down.
Any ideas? This is driving me crazy.
TIA