I discovered the problem was due to an incorrect setting within IIS.

Here’s what I did to correct the problem:
I went to IIS Manager → Sites → SBS Web Applications → Rpc → Authentication.  There I found only “Basic Authentication” was enabled.

Enabled “Windows Authentication” then ran an IIS reset. When IIS came back online, I was able to connect via TS Gateway to the server and at least one workstation. I connected and disconnected multiple times and it had no problems. The end user verified they were also able to authenticate without error, and gained remote control of their Windows 7 computer.

1. Open command prompt and type: net stop “update services”

2. Next, at the command promt type: net stop w3svc (if it is SBS 2008 it will also stop the Terminal Services Gateway, remember to restart)

3. Open Microsoft SQL Express Management Studio (if you don’t have this, go to http://tinyurl.com/ynl9tv to download) and connect to the MICROSOFT##SSEE database, which is the WSUS database and the SharePoint databases in SBS 2008. You can’t just connect to the database normally, you need to type this in server name area:   \\.\pipe\MSSQL$MICROSOFT##SSEE\sql\query

 4. Detach the SUSDB database, move the SUSDB folder to the new location and attach the database again with Management Studio

5. Restart the services: “update services”, “w3svc”, and “Terminal Services Gateway”

1. Click Start, click Run, type regedt32 or type regedit, and then click OK.
2. In Registry Editor, locate the following registry key:HKey_Local_Machine\System\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols\SSL 2.0\Server
3. On the Edit menu, click Add Value.
4. In the Data Type list, click DWORD.
5. In the Value Name box, type Enabled, and then click OK.Note If this value is present, double-click the value to edit its current value.
6. Type 00000000 in Binary Editor to set the value of the new key equal to “0″.
7. Click OK. Restart the computer.

IIS negotiates the encryption with the client browser. An attacker could use a tool that tells the server it has only sslv2 (which is weaker) available. If you disable sslv2 it only uses v3 or tls, as requested by browser. A browser only supporting sslv2 would fail.

 This applies to Windows Server 2003, and Windows Server 2008, and both versions of SBS.

http://support.microsoft.com/default.aspx?scid=kb;en-us;187498

You can change the security setting so that the network is not made public in the first place.

To do this on your local server or Vista/Windows 7 desktop , follow these steps:

1. Start –> run –> MMC –> press enter

2. In MMC console , from menu file select Add/Remove Snap-in

3. Select Group Policy Object editor –> Press Add –> select Local computer –> press OK –>press OK

4. Open Computer configration –>Windows Settings –>Security Settings –>select Network list manager policies
on the right Side you will see options for :

double click –>Unidentified networks

  Then you can select the option to consider the Unidentified networks as private and if user can change the
location

wmic qfe list

This will work in Windows Vista, Windows Server 2008 and Windows 7. You can also pipe it a text file if you needed to print it off or document it.

From The Wild Wild Web article by Danny Kazmarek:

According to the latest issue of SC Magazine, phishing attempts are on the rise and nearing 20,000 new scams per month.

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To create the E12SP2READY registry value, follow these steps:

1. Click Start, click Run, type regedit in the Open box, and then click OK.
2. Locate and then click the following registry subkey:
   HKEY_LOCAL_MACHINE\Software\Microsoft\SmallBusinessServer\Exchange

   Note If the Exchange subkey does not exist, you must create it. To do this, follow these steps:

   1. Right-click SmallBusinessServer, point to New on the Edit menu, and then click Key.
   2. Type Exchange and then press ENTER.
3. After you select the Exchange subkey that is specified in step 2, point to New on the Edit menu, and then click DWORD Value.
4. Type E12SP2READY, and then press ENTER.
5. Right-click E12SP2READY, and then click Modify.
6. In the Value data box, type 1, and then click OK.
7. On the File menu, click Exit to exit Registry Editor.

Full article at Microsoft - http://support.microsoft.com/kb/973862

I prefer to use the Ultimate Boot CD for Windows (UBCD4WIN) for this purpose,  it includes a Windows XP PE environment with lots of useful system utilities and applications.  You can find out more information about UBCD4WIN at their website

Here are some links that cover the process of using UBCD4WIN to create a bootable USB drive in detail:
http://foribb.blogspot.com/2009/01/make-your-pen-drive-bootable-install.html
http://www.dedoimedo.com/computers/livecd.html

After running some searches on the issue, I discovered that there were a large number of Windows 7 users who had been experiencing a similar problem.  The common factor was often the use of an NVidia NForce onboard network adapter,  however in this case the computer in question was using an Atheros 10/100/1000base-t controller (Onboard an ASUS motherboard).

The initial recommendation provided was that affected users should acquire updated NIC drivers from the manufacturer of their network card,  however there were no update drivers available for the Atheros card.

Luckily I came across information posted by a user suffering from the same problem on a similar system using the same onboard NIC (Atheros).  The recommendation that corrected the problem permanently was to:

Open Device Manager

Locate the Network Adapter

Right click, Properties

Go to Advanced tab

Locate the Task Offload (aka TCP offload) property on the list and set it to Disabled

After setting this property and applying the changes,  the Internet connection remained stable and no longer dropped out when transferring large amounts of data.

For more information see:
http://www.sevenforums.com/network-sharing/5787-problems-atheros-l1-ethernet-adapter-win7-x64.html
http://social.answers.microsoft.com/Forums/en-US/w7hardware/thread/59bcb7f5-fcca-44a4-b1db-787b1d269825

http://www.codeplex.com/NetPing