Best way to remove a computer from a domain and return to a workgroup without data loss

I know how to do this manually...but I have a friend who is helping out a business by getting rid of thier old/broken server and going back to file sharing with just a workgroup.  There are several users that have been on the domain for a few years.  He wants to move them to a workgroup on their computers without losing all their documents, etc.  The user profiles are not stored on their server...only on the local computers.  I told him to go into documents and settings and into the user profile named folder and backup all the data.  Then to move it to the local computer users profile and he should be good.  Is that correct?  Is there a wizard or better way to do it?
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authen-techAsked:
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Rob WilliamsConnect With a Mentor Commented:
Removing the PC's from the domain will not cause any data loss at all, however it does it make it inaccessible to a non administrator.

Make sure before removing the PC from the domain you reset the local admin password, as no one likely remembers it, and the domain admin password will no longer work. Once the PC is removed from the domain create the new user account and logon to create the profile. Once done you you can manually copy the contents from one profile to the other, or if you want to maintain configuration options you can go to My computer | advanced | profiles -settings | and use the copy option to copy a profile from one user to another.  Before doing so reboot the PC, and you have to be logged in with an admin account that is neither the copy to or from account.

There is also the free ProfWiz (profile wizard) tool:
http://www.forensit.com/Profwiz/index.htm
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twcadminCommented:
you could use the files and settings transfer wizard to backup the logged on user account. Then restore to a local user account.
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Rob WilliamsCommented:
Thanks authen-tech.
Cheers !
--Rob
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