You may see a log in error message like this: Authentication failed on the remote side

If you look at the local Administrators group it will look like this:

There is a hotfix for pre SP1 2008R2 but the hotfix is included in SP1 for 2008 R2. This did work correctly for me, I think a different Windows update has broken authentication.
Once SP1 has been installed then you local Administrators group should look correct:

Hopefully this will help some one else out, as I couldnt see a topic about it on the forums.
Ian