Check "Show Interface management toolbar", apply, and goto domain/account where you want to disable Remote Desktop. There, you can choose whether this option should be visible or not to user.
I must be missing something. Where in the client/domain config do I disable remote desktop?
I've got Edit, Report, Preferences, Limits, Permissions, IP Pook, IIS Application Pool, Skeleton, Logo Setup, Custom Buttons, Add New Domain, Domain Templates, and Traffic as options. None of them appear to have any Remote Desktop options when I drill down.