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Internet Explorer Does Not Open When Users Are Remote Users

I just setup thin clients to remote to virtual PCs I have running on a XenServer. I have one domain user for all these thin clients. On the virtual Windows XP machine, they are Remote Users. If it is setup this way, there are 5 the can open Internet Explorer and 5 that cannot. If I change the users to be Administrators on the computers, everyone can open Internet Explorer. I do have some policies setup to block the internet by use of proxy connections, but this problem did not start until I switched the users to Remote Users from Administrators. Does anyone have any ideas why this would be happening? Please let me know if you think you need more information.

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arunexp
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Yes, this worked. I had a GP set that was disabling IE from opening. Thanks for the help.