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Windows Server 2008 - Smart Card service is down

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I'm getting this weird error when trying to work with a SmartCard on an ec2 machine running Windows Server 2008.

I'm using AnywhereUSB to connect my physical smart-card reader to the remote machine. The device itself seems to be recognized fine by the OS, but when I try to access it, I'm getting this error:

General application error (The Smart Card service is down).



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