I got it to work:
I was running the Windows XP Sp2 firewall. That is the firewall that comes with Windows XP by default. Basically there is a setup in there that says:
Allow Remote Desktop to connect.
Once I checked that everything was ok. I did not have to disabe the firewall.
So here are the steps in trouble shooting this problem for the archive:
On your windows XP
1. have remote desktop enabeled (rightclick on my computer, on the Remote tab, you need to check the two boxes)
2. make sure your firewall does not block remote desktop packets, for most users this will be the right steps: control panel, security center, windows firewall, Exceptions, make sure Remote Desktop has a checkbox beside it. If you want to be really carefull you can edit the Remote Desktop and put (only accept requests from my network), so noone can remote desktop in from your internet, but most of the time your router will most likely block this.
Remote desktop works great and. I really missed a video input port on my g5 this really replaces that need.
Thanks for all the help!!
Dan