When configuring Citrix XenDesktop’s VM Hosted App functionality the connection to the app would hang on “Connection established. Negotiating capabilities…

 

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I tried several solutions:

1) Change the permissions on HKLM\SOFTWARE\Microsoft\MSLicensing as described in this article: http://support.citrix.com/article/CTX123816

2) Delete the registry keys: HKLM\Software\Microsoft\MSLicensing\HardwareID and HKLM\Software\Microsoft\MSLicensing\Store

3) Delete the registry keys Certificate, X509 Certificate and X509 Certificate ID from HKLM\System\CurrentControlSet\Services\TermService\Parameters

But none of them worked for me. For me the solution was to change the value of AppInit_DLLs from c:\progra~2\citrix\system32\mfaphook.dll to mfaphook.dll. This key can be found in HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows.

Afterwards the receiver could connect to the VM Hosted App.

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