Remote desktop connection has timed out

Hello,

I have a problem connecting to VPS with Windows XP Remote Desktop Connection.
The error I'm getting is:
"Remote Desktop Disconnected - The remote connection has timed out. Please try connecting to the remote computer again."

I am not behind any network, firewall, router...

I tried to turn off firewall and antivirus programs to see if they are blocking it. It didn't help.
All help I could find from Microsoft support site refer to the server side configuration. But I know problem isn't with server, because I am able to connect from another PC (notebook running windows 7 with wireless connection). It is working straightforward with default settings.

Anyone know what could be the problem? Are there any settings that need to be changed in Windows XP for RDC to work?

Hello and welcome to Tom's Hardware Forums.

Reading your post makes me think you already know this but try Control Panel>System>Remote and make sure there's a tick in "Allow users to connect remotely to this computer".