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This suggested that the desktop assigned to the the user does not have the RDP service enabled (which should have been enabled in the template if cloned from one), or there may be a firewall/routing issue between the SunRay server the user is connected to (if using Sun Ray Client).
Note that the desktop console view used by the VDI admin console is using VRDP, so this is not dependent on the MS-RDP service running on the Xp desktop.
It could also perhaps be an issue where the user you are using does not have RDP access, which could point to a AD policy setting if using AD, etc.
Try connecting to the VM IP address directly using a rdesktop or microsoft client to see if the problem is with the XP desktop itself or not.
Sorry...ignore above post...I fixed it.
Removed Desktop, Removed Pool
Re-created pool as Flexible, Host Networking, VirtualBox RDP (I think selecting windows RDB the first time was the real issue).
Imported desktop, imported template...
MS-RDP to VDI machine...with credentials; works like a charm