KB: "Not enough storage is available to process this command" error when a new user tries to log on through RDP in Windows Server 2008 R2

A new KB article (2877056) was released yesterday regarding an error message when connecting via RDP to a non domain-joined RD Session Host Server with a user account that is configured to change the password at next logon. Which results in a “Not enough storage is available to process this command.”.

“…You have a Windows Server 2008 R2-based computer that is not a member of a domain. An administrator of the server creates a new user who is also an administrator, sets a password for the new user, and selects the option to require a password change at the next logon. When the new user connects to the server through Remote Desktop Protocol (RDP) for the first logon, he or she is prompted to enter a new password. When the user types the new password and tries to continue, he or she receives the following error message: Not enough storage is available to process this command.

The password is not changed, and the user receives the same error message when he or she tries to log on again.

This issue occurs because the RPC runtime receives an error.
Specifically, the scenario that occurs is as follows:
The password change request process is put into an anonymous access token by Local Security Authority (LSA). This occurs because the password is not valid and the user is therefore not authenticated…”

Source en download: http://support.microsoft.com/kb/2877056/