XBox Extender problems with Win 7

Hi Searched all around...none of the solutions offered fixes my problem. Hope you can help.

After entering the 8 digit code on my Windows 7 Ultimate PC in the extender setup, I get the "Configuration Error" "An error was encountered while configuring your computer for use with this Extender.".

Happens every time the same way. Each failed attempted causes two event log entries below. Interestingly, immediately after the failed attempt - the "Media Center Extender Service" service gets disabled. It is running under the "Local Service" account. I can set it to "automatic start", and then re-start the service, but as soon as I go through the Extender Setup, and it fails, the service is disabled again, with the two event log entries..

I do not have any Media center certificates located under "Certificates (Local Computer)\Personal".

Other relevant info:.

Windows 7 Ultimate 64 bit.
New Xbox 360 Elite (never have had an xbox connected).

Windows firewall disabled on my PC.

I have a Sonic Wall router/hardware firewall. I believe the XBox and the PC see each other..

XBox can "see" the computers on my network (my media center PC and other PC's are listed in XBox when searching network.). When I do the network connectivity test on the XBox, it passes the test to my PC..

Xbox is connected to internet - able to log on to XBox live, and stream from Netflix etc..

In media center on my PC, the Xbox is listed in the Externder section. Shows "Not set up", and shows the setup key, with 3 (same 3) of the 8 digits listed from the Xbox listing.

IP address listed on Xbox settings is the same subnet and gateway as my PC.

However, I cannot ping the Xbox IP address from the PC...times out..

Event Log Errors:.
Event ID: 534.
Media Center Extender Setup failed to configure Terminal Services for Extender..
Error: Access is denied..

Event ID: 533.
Media Center Extender Setup failed to create or retrieve the Windows Media Center Extender PC certificate..
Error: Access is denied..

What can I do to resolve the access denied problems?.


Logged in to Windows with an account that is an administrator account when trying to configure extender.

Running WMC as administrator

Xbox is connected to the network via network cable (not wireless).

I have disabled the policy setting "Always prompt for password upon connection" in the Computer Configuration\Administrative Templates\Windows Components\Remote Desktop Service\RemoteDesktop Session host\Security hive.

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