Success Audits in event log for username: servername$ is this correct?

That's correct. It's the computer accounts that authenticate to the logon server. It will log alot of events so you can turn successfull logging off if you don't need them by group policy.

Computer Configuration - Windows settings - Local Policues - Audit Policy:
Audit account logon events - Failure
Audit account management - Success
Audit logon events - Failure

Is it normal to have so many a day? also just to confirm GLAZERITE01 is the name of the domain controller so should it be logging events authenticating itself?
Thanks

How often does it occure in the eventlog? What is the Event number?

It's probably just the discrete communication channel between the computer and the domain that are set, or if the computer need access to recources in the domain (i.e. group policy).

there are a few different events actually.....

Event number: 538

User Logoff:
       User Name:      GLAZERITE01$
       Domain:            GLAZERITE-DOM
       Logon ID:            (0x0,0x14001414)
       Logon Type:      3

Event number: 540

Successful Network Logon:
       User Name:      GLAZERITE01$
       Domain:            GLAZERITE-DOM
       Logon ID:            (0x0,0x14001414)
       Logon Type:      3
       Logon Process:      Kerberos
       Authentication Package:      Kerberos
       Workstation Name:      
       Logon GUID:      {52d9fb55-eac4-3ab6-fecc-a9fe4f28bbd6}
       Caller User Name:      -
       Caller Domain:      -
       Caller Logon ID:      -
       Caller Process ID: -
       Transited Services: -
       Source Network Address:      192.168.0.1
       Source Port:      9237

Event number: 576

Special privileges assigned to new logon:
       User Name:      GLAZERITE01$
       Domain:            GLAZERITE-DOM
       Logon ID:            (0x0,0x14001414)
       Privileges:      SeSecurityPrivilege
                  SeBackupPrivilege
                  SeRestorePrivilege
                  SeTakeOwnershipPrivilege
                  SeDebugPrivilege
                  SeSystemEnvironmentPrivilege
                  SeLoadDriverPrivilege
                  SeImpersonatePrivilege
                  SeEnableDelegationPrivilege

The events seem to occur every 15 to 30 seconds.

Thanks

Seems to me that you are monitoring "privilige use". Can you check to see if it is enabled? See my first post. It's called: "Audit privilege use".

Dunno if u have this set in the "default domain policy" or a local policy.

Ok I have checked the default domain policy where you specified and all the audit policies are set to 'not defined'.

I checked the default domain controller policy and the following is set...

Audit Account logon events: Success
Audit Account Management: Success, Failure
Audit Logon Events: Success, Failure
Audit Policy Change: Success
Audit System Events

The other options are set to 'not defined'.  I have just rechecked the log and there has been over 16000 logon/logoff success audits.

Do you have IIS or MSSQL installed?

yes, but only the versions which come on SBS 2003