Can't seem to connect to XP sp2 machine via RDC

Please help. I have two machines x.x.x.206 and x.x.x.208, both are XP sp2.
Both are behind a router. I CAN ping both. I run netstat -a and BOTH show
3389 as listening. I checked both and ensured "Allow users to connect
remotely" is checked. MSCONFIG shows "Terminal Services" as running. There
are NO firewalls installed. I can NOT connect to x.x.x.208 no matter what I
do, 206 is FINE. This is both locally and remotely. I am running sp2 again,
but is there a way to just remove/repair/re-install the RCD/Terminal Service
part of the OS? I am desperate, I do NOT want to re-build the machine for
something that should have an answer for.

Thanks in advance,

Joel