Windows XP Home & Windows XP
Professional installed on a machines as part of a WorkGroup has
"Simple File Sharing" enabled by default which offers no NT
Challenge/Response Authentication. "Simple File Sharing" would
prevent the DameWare NT Utilities program from working properly
(i.e. Error 5 Access Denied). "Simple File Sharing" also does not
allow you to remotely install/remove/start/stop the Mini Remote
Client Agent Service. "Simple File Sharing" cannot be turned off in
Windows XP Home, therefore you must manually install the Mini
Remote Client Agent Service on machines running Windows XP Home.
Once the DMRC Client Agent Service has been installed, then you
should be able to use the "Encrypted Windows Logon authentication
method to connect to this machine.
Please refer to the following knowledgebase article for more information on DameWare and Windows XP:
Is DameWare Software compatible with Windows XP?