Here is the log file. i have tried giving full rights to everyone on HKLM\Software\Microsoft\SMS key and reboot the system but it doesn't work. there is another machine with same OS and Service pack but that works fine. Remote Control Agent started. RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Releasing launcher RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Successfully released launcher RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) RCAgent successfully started. RemoteControl 5/13/2010 12:55:06 PM 5468 (0x155C) Server is no longer in use. Shutting down. RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Destroying systray notification RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Terminating monitor thread RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Remote Control Agent terminated normally. RemoteControl 5/13/2010 12:55:06 PM 4116 (0x1014) Succeeded loading resource DLL 'C:\WINDOWS\SysWOW64\CCM\clicomp\RemCtrl\1033\_RCAgent.dll' RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) In FinalConstruct RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: Allow Takeover = 1 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: Audible Signal = 0 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: Visible Signal = 0 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: System Tray Visible Signal = 1 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: Access Level = 2 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Registry: Permission Required = 0 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Creating registry monitor thread RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Created monitor thread (id = 0x000f88) RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Monitor thread started RemoteControl 5/13/2010 12:55:06 PM 3976 (0x0F88) Inserting system tray notification RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Creating RDP session RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Failed to create the Collab session (0x80070057) RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Failed to create the RDP session (0x80070057) RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Remote Control Agent started. RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Releasing launcher RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Failed to open start event (0x80070002) RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Destroying systray notification RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Failed to activate agent object (0x80080005) RemoteControl 5/13/2010 12:55:06 PM 5028 (0x13A4) Launcher is no longer in use. Shutting down. RemoteControl 5/13/2010 12:55:06 PM 5468 (0x155C) Terminating monitor thread RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Remote Control Agent terminated with error 80070002 RemoteControl 5/13/2010 12:55:06 PM 3692 (0x0E6C) Remote Control Launcher terminated normally. RemoteControl 5/13/2010 12:55:06 PM 5468 (0x155C) Server is no longer in use. Shutting down. RemoteControl 5/13/2010 12:55:06 PM 5028 (0x13A4) Remote Control Server terminated normally. RemoteControl 5/13/2010 12:55:06 PM 5028 (0x13A4)