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Authentication Rejected when trying to connect with password (without prompt to enter password)

Trying to connect to a partner by right-clicking on the partner in COMPUTERS & CONTACTS and selecting REMOTE CONTROL USING PASSWORD

It gives me the following response without asking me to enter a password:

[Authenticating...] followed by [Authentication rejected]


I will also on occasion get the error message pop up:

Error Code: WaitforConnectFailed


I have been receiving the authentication error for the past couple of weeks now, and have rebooted computers on both ends of the connection.  It seems to be an intermittent issue, where I've been able to connect at some times. 


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