When RDP as a Domain User, Smart Card Requested

My W8 machine is connected to domain zen. If I rdp to the W8 machine, I can log in as a local user without problems. If I try to log in as a domain user, I am prompted for a smart card instead of a password.

Any ideas why?

Note that Interactive login: require smart card is disabled in group policy:

And here is the output from rsop.msc:

Some additional information on this one. If my connecting machine is on the same domain/network as the W8 machine, then I am prompted for a password as usual. If the machine is remote, on a different domain, then I am prompted for a smart card. In addition, the machine I am connecting from that gets the smartcard prompt is an XP box - so it may be an issue confined to mstsc.exe version 6.0.x - with 6.1 the authentication is managed prior to the rdp gui session being established.

I haven't isolated exactly which of these factors triggers the different response.

I managed to bypass the problem by clicking on "other user". I was then able to enter my username and could enter a password.

I had exactly the same issue. No idea why it prompts for smartcard, but found 2 workarounds:

1. use Linux RDP client (grdesktop) where you submit password before connection is made

2. From XP, add /public to mstsc command line:

   mstsc /v a.b.c.d /public