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Slow GUI performance after applying GPO

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Hello,

While setting up a new 2012 AD Domain there was a perception of latency in the Servers after applying all the GPO's requested by Security.  The initial tests were on all Server 2012 Standard VMware (ESXi 5.1) VM's.  After some investigation, the GPO causing the issue was narrowed down to;

Computer Config>Policies>Windows Setting>Local Policies>Security Options>
"System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing" - Set to Enabled

Some info on what it does - http://support.microsoft.com/kb/811833

What I see is that the GUI will perform slowly when using Remote Desktop to connect.  It will take 3 or 4 times longer to log in than normal.  Navigating through the GUI is just slow in general.  A task like opening Event Viewer will take 10+ seconds rather than 1 or 2.  When using the console, there are no delays longer than normal.

This is a new AD Domain, 2012 Functionality Level.  I set up a second 2012 Domain with a new VMware Template and the same issues arose.

I spun up a 2008 R2 Server in that domain and it does not exhibit the same "latency" issues.  I ran some performance benchmarks and the server's don't seem to be impacted when the GPO is applied.  From the info above, it seems to only be effecting the 2012 Servers and only connecting via RDP.


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