Terminal Services Single Sign On with XP SP3

I have enabled single sign on on my XP SP3 client this is working fine when I connect directly to my two TS servers.
However, if I try to connect directly to a tsfarm, which contains the same servers I am prompted to enter my credentials.
The symptoms are exactly the same as described here http://support.microsoft.com/default.aspx/kb/953760
I have applied the Hotfix but SSO still does not work.
Any suggestions on where to look next would be greatly appreciated


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