Error: Workgroup Remote Logon Failure

This error reads:

Logon failure: unknown user name or bad password

Cause

This error can occur when you are debugging from a machine on a workgroup and you try to connect to remote machine. Possible causes include:

There is no account with the matching name and password on the remote machine.
If the remote machine is a Windows XP or Windows Vista system and both machines are on workgroups, this error may occur due to the default Local Security Policy setting on the remote machine. The default setting for the Local Security Policy setting is Guest only - local users authenticate as Guest. To debug on this setup, you must change the setting on the remote machine to Classic - local users authenticate as themselves.

To add user rights assignments

You must be an administrator to carry out the following steps.
From the Start menu, choose Control Panel.
In Control Panel, choose Classic View, if necessary.
Double-click Administrative Tools.
In the Administrative Tools window, double-click Local Security Policy.
In the Local Security Settings window, expand the Local Policies folder.
Click User Rights Assignment.
In the Policy column, double-click Debug programs to view current local group policy assignments in the Local Security Policy Setting dialog box.
To add new users, click the Add User or Group button.

From the Start menu, choose Control Panel.
In Control Panel, choose Classic View, if necessary.
Double-click Administrative Tools.
In the Administrative Tools window, double-click Local Security Policy.
In the Local Security Settings window, expand the Local Policies folder.
Click Security Options.
In the Policy column, double-click Network access: Sharing and security model for local accounts.
In the Network access: Sharing and security model for local accounts dialog box, change the value to Classic - local users authenticate as themselves and click the Apply button.