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Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.
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Also are these users local administrators on the machine? If they are not then what is the point of locking down logging in locally? If there are no other accounts other than the administrator account and they do not have local admin rights to create other local admin accounts then I would not be a good move to restrict local logon.
Think about it, if you restrict this and something happens with the domain or that machine you will not be able to test anything locally (off domain) because you have locked it down. I would not recommend doing something like that.
Will.