This post just saved me roughly 60 miles of driving. All I needed to do was set up a virtual machine remotely, and with remote desktop I got the exact error you got.
Fortunately with remote desktop (after reading this,) I installed Chrome's remote, went in via that, bam. worked like a charm.
Windows 7 ultimate 64, all patches as of two weeks ago.
Workstation 8.0 or 8.1 I believe.
Thanks, and if you're ever in Nashville my company owes you a beer