"The requested operation cannot be completed because the Terminal connection is currently busy processing a connect operation" Error solved

This is the issue where a user has disconnected from a remote server instead logging off, taking up one of the Remote Desktop sessions.Then we will get the error "The terminal server has exceeded the maximum number of allowed connections".This can be easily corrected by logging into the server in console mode and manually logging off the user.

Whenever we try to connect for first time it will show the same error this is because the user was disconnected from the remote machine instead of logoff.vSo for this the user need to login to the system and log off the session that he opened previously.You can use the below commands to kill the user in remote machine. 

c:\>sc \\THESERVERNAME query TermService

SERVICE NAME: TermService

DISPLAY_NAME: Terminal Services

TYPE               : 20  WIN32_SHARE_PROCESS
STATE              : 4  RUNNING(NOT_STOPPABLE, NOT_PAUSABLE, IGNORES_SHUTDOWN))
WIN32_EXIT_CODE    : 0  (0x0)
SERVICE_EXIT_CODE  : 0  (0x0)
CHECKPOINT         : 0x0
WAIT_HINT          : 0x0

The Terminal Services was running, it can't be restarted on Server 2003 so we can take a look att the running processes:

C:\>tasklist /s MYSERVERNAME /u MYUSERNAME /p MYPASSWORD
(Output truncated to highlight relevant processes)

Image Name PID Session Name Session# Mem Usage

Image Name           PID      Session Name   Session#  Mem Usage

==================== ======== ============== ========= ============

System Idle Process  0                       0                 28 K

csrss.exe            4140     Console        7              2,684 K

winlogon.exe         4220     Console        7              5,840 K

logon.scr            4500     Console        7              1,580 K

Looking at the processes above, I recalled an issue that could sometimes arise with the logon.scr process on Virtual Machines.

Thinking that logon.scr (Process ID 4500) may be the culprit, I decided try killing the process:

C:\>taskkill /s MYSERVERNAME /u MYUSERNAME /p MYPASSWORD /PID 4500 SUCCESS: The process with PID 4500 has been terminated.

After seeing that the process was successfully killed, I tried logging in again and could do so successfully!