I was trying to remote into a Windows 7 Hyper-V guest from my Windows 7 laptop using my smart card for authentication. When I initiated the remoting session I made it all the way to the “Welcome” screeen, but then received the following error:
“The system could not log you on. An error occurred trying to use this smart card. You can find further details in the event log. Please report this error to the system administrator.”
This is the same error message highlighted in KB article 939682.
Here’s how I solved the problem: