I just installed Windows 2003 server standard edition, and configured Terminal Server and users for remote access. I can use Remote desktop logged in as the Administrator, but when I attempt to login as a normal user, I get the error "THe local policy of this system does not permit you to login interactively."
Added the users to the built in Remote Desktop group
Went into the Domain security policy/local Policy/user right assignments/allow login locally...and added the remote desktop group.
Ran the gpupdate /force thingy
Same problem. Any ideas?