need local admin rights on a member server.

Do you have any Group Policy Objects configured on the container containing this server?  I'm thinking specifically of a Restricted Groups policy that may be removing your newly-configured user from the Administrators group in the background.  Run a Resultant Set of Policy report against the user/computer combination in question.

Only other thing that immediately comes to mind would be the application itself - some are stupidy-coded and check for the actual Administrator account, not just an account with administrative rights.

When I run RSOP on the user all I get is Default domain policy and on the computer, local group policy has a red "X", then is has default domain policy and WSUS Update.

The tutorial for the program I'm installing states to add a new user.  I'm not sure if I can use the existing Administrators account.

If you type 'net localgroup administrators', does the newly-created user appear in the membership listing?

Type it where?

This is a command prompt utility. Enter it at the Windows command prompt.

nope only Administrator

If I type the command from the DC, the new account does display

> "nope only Administrator"

This means that the newly-created user is not a member of the Administrators group on the member server. What steps did you take to add this user to the local Administrators group?

I added it via AD users and computers

I added the new user from a different Server.  Does it have to be added directly from the member server?

OK.  I just did that and it shows the user as "users" and "Administrators" but I'm still getting the original warning, that I don't have local admin rights

Changes in group membership will not apply until you log out of the server and log back in.

Just for grins I rebooted.  I logged on as the new user and opened the MMC for computers, went to the local users and it shows the new user as an Administrators and user, but still having the same problem.  I really appreciate you hanging in there with me.  This project is so I can get the President of our company, STUPID new blackberry communicating with the exchange server.

I assume you have checked the Event Viewer on the server for any meaningful errors, as well as any error logs produced by the application installer itself.

If these do not produce any useful information, my only other recommendation would be to attempt the install using the actual administrator account.

Got it.  I right click on the set up file and changed how it was being installed.
I accepted one of your earlier procedures.

Thanks for all your help.