diagnose Remote Desktop (RDP 7.0 with NLA) 0x80004005 error in Windows XP SP3

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I try to connect with RDP 7.0 from Windows XP SP3 to Windows 7 (RDP 8.1), but after entering credentials immediately pops an error window (white cross on red circle) saying about authentication error with code 0x80004005. Have tried to allow on server side any client version (without NLA), and with NLA — no difference (NLA supported on both sides). Tried a user from Administrators, and normal user (listed in Remote Desktop users). Reverse connection works.
Which parameters or properties to check? Please, give comprehensive list, I almost newbie here.

windows-7
authentication
windows-xp
rdp
rds
asked on Server Fault Aug 5, 2020 by green

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