Cannot connect using remote desktop on XP PCs

Hello,
I cannot connect to a remote Win XP SP3 PC from my Win XP SP3 PC.
I have added remote desktop users (Domain Admins of which I am a member).
I can ping by both by IP and name from client to host and host to client.
I am using static IP addresses on both and we are on the same network.
Both PCs are attached to a domain and each can access the internet.
Users loggin in at each end are domain admins during the build process.
I have been able to do this in many times in the past under the same conditions on other PCs that I have built.
BTW: Did I mention that this is a fresh installation?
Also others in my dept cannot connect either.
This is part of a rollout and RDC is a necessary part of it.
Oh, DameWare works fine.

Any help would be greatly appreciated.

Paul