"The local policy does not permit you to logon interactively" error message when users try to connect to a Windows Small Business Server 2003-based computer by using the Remote Desktop client

When users who are members of the Power Users group or users who are members of the Remote Desktop Users group try to connect to a Microsoft Windows Small Business Server 2003-based computer by using the Remote Desktop client, they receive the following error message:

This issue may occur if the Windows Small Business Server 2003-based computer was upgraded from the Evaluation version to the Full version of Windows Small Business Server 2003. The Remote Desktop Users group does not have the "Allow log on through Terminal Services" right after the upgrade. The Power Users group is a member of the Remote Desktop Users group. Therefore, the Power Users group also does not have the "Allow log on through Terminal Services" right.

To resolve this issue, use one of the following methods.

Method 1

Add the Remote Desktop Users group to the "Allow log on through Terminal Services" right. To do this, follow these steps:

1. Click Start, click Run, type secpol.msc in the Open box, and then click OK.
2. Expand Local Policies, and then click User Rights Assignment.
3. In the right pane, double-click Allow log on through Terminal Services.
4. Click Add User or Group.
5. Type Remote Desktop Users, and then click OK two times.
6. Close the Local Security Settings snap-in.
7. Click Start, click Run, type cmd in the Open box, and then click OK.
8. Type gpupdate /force, and then press ENTER.
9. Close the Command Prompt window.

Method 2

Reinstall the Administration component in Windows Small Business Server 2003. To do this, follow these steps:

1. Click Start, point to Control Panel, and then click Add or Remove Programs.
2. Click Windows Small Business Server 2003, and then click Change/Remove.
3. On the Component Selection screen, click to select Maintenance in the Action list for the Server Tools component.
4. On the Component Selection screen, click to select Reinstall in the Action list for the Administration component, and then click Next.
5. Click Next two times.
6. When the Setup program has completed, click Finish.
7. Click Start, click Run, type cmd in the Open box, and then click OK.
8. Type gpupdate /force, and then press ENTER.
9. Close the Command Prompt window.