This message appears when you trying remote other host from Windows XP to another host of Windows XP through Remote Desktop.
It is happens due to the user does not have or not included in Local Remote Desktop users group
1]Add allowed users to the Remote Desktop Users list.To do that,
a]Right click on My Computer->Go to properties.
b]Then find for Remote tabbed. In Remote Desktop field,you may find the Select Remote Users.
c]Click Add button and type the user account that you want to add.Then click ok and close all. (If you want to add more users,just separate them using semicolon.
Take note that to give the permission here,you need to use administrator account.