This morning Anti-Virus Guard,AVG (not the free version), decided that TRMSRV.DLL in the System32 directory was threat and copied it out of the directory.
The result was that Terminal Service no longer works. That means that software like Remote Desktop Connection 2 (RDC), can’t connect, although the machine responds to pings and Samba requests.
Placing a exception in AVG to not check that directory (sounds bad, eh?), and restoring the file from another machine seems to have temporarily address the problem.
I wonder if AVG knows about this.
We’re also seeing that Cygwin and the System Restore Point is also among the collateral damage.
UPDATE 11-Nov-2008: Looks like AVG is now flagging Windows as a virus.