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bmsjeffFlag for Afghanistan

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User Cannot install programs - configured as Admin on Domain.

I just added a new laptop (XP SP2) to a SBS 2003.  The user cannot install programs.  I can install if I runas Admin.  I can install if I log him on as a local user on the pc.  I don't think it is a profile issue as the user can sign onto his old laptop and install software.  
Running: net user username - user is listed in the Administrators group.
User does not have access to firewall settings etc.  Tell's him to check with the network admin.

Also, when I try to connect via

Where should I start?
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Thanks!!! :-)
That was it.