Error: The local policy of this system does not permit you to logon interactively

From: Mark (mark.wyckoff@reliastar.com)
Date: 05/30/02 

From: mark.wyckoff@reliastar.com (Mark)
Date: 30 May 2002 10:03:50 -0700

We have a user running W2K Prof. Workstation, that is going out of
town and never used our RAS server before. This morning we setup a
dial-up networking connection and tested the dialup, which worked
flawlessly. We tested three times, accessed his Exchange e-mail, and
no problems. We then shutdown, re-connected the network cable to the
LAN, and booted up. Now when we try to login, we are getting an error
"The local policy of this system does not permit you to logon
interactively". We are consistently getting this message, and are
unable to get logged in to the PC. We have even tried the local
Administrator ID, as well as two other local IDs that have
administrator rights.

I've read through many postings, and tried several possible solutions.
 We've tried running the Computer Management mmc from the server, but
anytime we try to get into the local security settings we get Access
Denied (even when attempting the Run As option). We're stuck. Any
advise?