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Add Workstations to Domain in Default Domain Controller's Group Policy

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6.9
Hello,
I am going through an audit (joy of joys! :) and the auditor is going to writeup a comment on :
On my windows 2000 domain, I have the following :
Policy:
Computer Configuration /Windows Settings/Security Settings/Local Policies/User Rights Assignment/Add workstations to domain
Policy setting:
BUILTIN\Administrators, NT AUTHORITY\Authenticated Users

Questions :
1) Even though it appears via the policy settings above that any authenticated user could add a workstation to the domain, in reality, only domain admins seem to be able to.  I have tested this using 5 different accounts that have different domain wide group policies, and the only accounts that work are those in the domain admins group.  Can anyone suggest another setting to check that could be over-riding the policy above or tell me why this policy is not being applied?  

I am glad only domain admins can add workstations, but I would like to explain to the auditor why (keep them confident I know what I am doing :)

2) What are the worst case scenarios of a hacker getting a computer onto our network and then added to the domain?  They would already have to know a username/password... can they somehow get any more access than that username would already permit them?

Thanks,
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