Administrative rights on local computer running Windows 7

I am having an issue with a user not having local admin rights to their computer. I have gone into the users group on the local machine and added the user name and gave the user administrative rights while logged on as Domain Administrator but when I log on as that user and try to install a program under their login it tells me I don't have administrative rights. How is that? I gave the user local admin rights.

We have a windows 2003 domain and I have remote server administrative console loaded on my Windows 7 machine so I can modify the domain to work with windows 7 machines and utilize windows 2008 active directory enhancements but don't know how to correctly give the user local admin rights to their machine and not to the whole domain. How do I do this?

Thank you in advance for your answers.
TimSr. System AdminAsked:
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McKnifeConnect With a Mentor Commented:
2 things to consider: if we add a user to the admin group, the setting will become effective on the next logon of that user, so no restart needed but a logoff if the user was connected the same time you modified the setting. Then: Due to the UAC, admins might run into problems with software incompatible to UAC - including setups. So please, the first step would be to see if you as domain admin can indeed install the software. And please double check if the user is still a member of the local admin group because it might also be a policy ("restricted groups") that modifies the group to a set of admins in the background.
Did you restart the comp? Just a guess

It seems the user is not added properly in local administrator group.

Can you reconfirm the same once again?
See this:
How to Add domain accounts to Local Administrators Group using GPO

Adding domain users to the local admin group in Vista
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You need to have the user log off and log back in for any changes to groups to take affect.

Are you just getting a prompt that you can Yes/No to when you run the app?  If you click Yes does it continue?  Have you tried Right Clicking on the App and choosing "Run as Admin?"  Does it work then?  If that's the case, you can right click on the App, choose properties, Compatibility mode tab, put a check in Run As Administrator and click APply and Ok.

The "Are you sure you want to run this as admin" pop up is a security feature in Windows 7.  No real way around this other then clicking yes.
Above what the others have said, and also , I have seen some older legacy apps that do not call applications and other installers correctly, or they are trying to write to the protected areas that used to be available, such as root c:.  

In those cases, I found that turning off UAC, restart, install my application, then turn it back on would allow me to install correctly.
TimSr. System AdminAuthor Commented:
I will try this in the morning and let you know. The user is currently using the machine and is in the middle of a big project otherwise I would kick them off.

Thanks for all the responses.
What was the final out come?
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