Well they had plans in SP2 to allow more than one connection but in the final version its back to the standard one connection at a time. Its to do with the licence. Only one person should be able to use the machine at a time because its a single user licence.
Anyway you can get past this and make it so you can have more than one session on the machine as shown above.
Howto?:
Goto Control Panel > User Acccounts. Click 'Change the way users log on or off'. Tick Use the Welcome screen and tick Use Fast User Switching. Apply and Close.
Goto Conrol Panel > Administrative Tools > Services. On Terminal Services set startup type to Disabled.
Goto Control Panel > System. Goto Remote tab. Untick 'Allow users to connect remotely to this computer' Click OK.
Start > Run > regedit
Goto HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server\Licensing Core
Create New > DWORD. Call it 'EnableConcurrentSessions' and set its value to 1.
Start > Run > gpedit.msc
Goto Computer Configuration > Administrative Templates > Windows Components > Terminal Services
Click 'Limit number of connections' and set it to enabled and enter your value (eg 10).
Note: On one of my machines I coudlnt see Terminal Services in the list, I got this screen:
You should get this screen/list:
If you dont have it in the list it dosent matter - termial services will still work. And also I think I worked out how to edit this value from the registry.
Download this version of
termsrv.dll (5.1.2600.2055)
Reboot into Safe Mode - This is necessary to remove Windows File Protection.
Copy the file and overwrite the current files in these locations:
C:\windows\system32
C:\windows\system32\dllcache
You will have to enter to second location into the address bar to get to the folder as it is hiden.
Reboot to normal mode.
Goto Control Panel > System. Goto Remote tab. Tick 'Allow users to connect remotely to this computer' Click OK.
Goto Conrol Panel > Administrative Tools > Services. On Terminal Services set startup type to Manual.
Reboot once again.
And if you dont want that stupid welcome screen on xp when you start your computer and want auto logon:
Start > Run > regedit
Goto HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\WindowsNT\CurrentVersion\Winlogon
Set DefaultUserName to your username.
Create New > String Value. Call it 'DefaultPassword' and set its value to your password.
Create New > String Value. Call it 'AutoAdminLogon' and set its value to 1.
Enjoy