|Your telnet config is messing with your testing.|
Correct the registry entries for RDP back to 3389
uninstall norton on both
disable the windows firewall on both
use only ip address
to troubleshoot you eliminate everything but the basics and then you build up from there. Right now you are a long way from basics.
You need to get basic pc to pc connectivity via rdp before you move on to via the internet.
Unless you are trying to stream sound the udp protocol is irrelevant.
Event viewer logs are under Administrative Tools