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Retrospect engineering as reviewed this problem and have found Microsoft documentation pointing to a specific OS bug causing the problem. Microsoft says the problem applies to the following systems:
Microsoft Windows Server 2003 R2 Enterprise x64 Edition
Microsoft Windows Server 2003 R2 Standard x64 Edition
Microsoft Windows Server 2003, Enterprise x64 Edition
Microsoft Windows Server 2003, Standard x64 Edition
Microsoft Windows XP Professional x64 Edition
Microsoft Win32 Application Programming Interface
Users have been able to use RDC with the "mstsc /console" command from the command prompt as a workaround for this issue.
Some users have also been forced to re-enter Retrospect license codes when launching Retrospect.
The service pack upgrade has incorrectly changed the permissions on the Retrospect configuration folder to "Everyone: Full Control". A service pack upgrade should not be changing the permissions of a Retrospect folder.
Change permissions on C:\Documents and Settings\All Users\Application Data\Retrospect to:
Remove Everyone
Add Administrators: Full Control
Add SYSTEM: Full Control
Add RBU: Full Control (this may only be necessary in a domain configuration)
Last Update: February 14, 2012