i found the solution. It was at the same time both subtle, and obvious.
As mentioned in the question, when i was modifying the following Remote Desktop Connection Client Group Policy settings:
- Prompt for credentials on the client computer
- Do not allow passwords to be saved
i was checking them on the server:
i thought it would be the server that dictates what the client is allowed to do. Turns out that is completely wrong. It was @mpy's answer (while incorrect), which led me to the solution. i shouldn't be looking at the RDP client policy on the RDP server, i need to look at the RDP client policy on my RDP client machine:
On my client Windows 7 machine, the policy was:
- Do not allow passwords to be saved: Enabled
- Prompt for credentials on the client computer: Enabled
i do not know when these options were enabled (i did not enable them in recent memory). The confusing part is that even though
Do not allow passwords to be saved
is Enabled, the RDP client would still save password; but only for servers below Windows Server 2008.
The truth table of functioning:
Do not allow saved Prompt for creds Works for 2008+ servers Works for 2003 R2- servers
================== ================ ======================= ==========================
Enabled Enabled No Yes
Enabled Not Configured No No
Not Configured Enabled Yes Yes
Not Configured Not Configured Yes Yes
So there is the trick. The group policy settings under:
Computer Configuration\Policies\Administrative Templates\Windows Components\Terminal Services\Remote Desktop Connection Client
on the client machine need to be configured with:
- Do not allow passwords to be saved: Not Configured (critical)
- Prompt for credentials on the client computer: Not Configured
The other source of confusion is that while
- a domain Enabled policy cannot override a local Disabled
- a domain Disabled policy can be overridden by a local Enabled policy
Which again leads to a truth table:
Domain Policy Local Policy Effective Policy
============== ============== ==============================
Not Configured Not Configured Not configured (i.e. disabled)
Not Configured Disabled Disabled
Not Configured Enabled Enabled
Disabled Not Configured Disabled
Disabled Disabled Disabled
Disabled Enabled Disabled (client wins)
Enabled Not Configured Enabled
Enabled Disabled Enabled (domain wins)
Enabled Enabled Enabled
Best Answer
An RDP session is not a valid Drag source in Windows (yet?), so copy and paste is the fastest way.
I usually hit ctrl-c and ctrl-v for copy and paste anyway, as personally I find it quicker than drag and drop, plus you don't get stuck waiting for imaginary transfers like when you copy something and then hit right-click to try and paste it between sessions.
Copying and pasting in and out of RDP is slower (transfer time-wise) than copying via a (VPN) share or FTP or HTTP, so I'll usually use one of those for large files, which keeps my cut & paste available for other tasks while it's copying.