I have a Windows 2003 Server which for some reason does not let me log in interactively (that is, locally). The machine issue the following error message when I tried logging in: “The local policy of this system does not permit you to logon interactively.”
From another machine in the network, I downloaded the Windows Server 2003 Resource Kit Tools (what a mouthful), then issue the following commands:
net use \\mymachine\c$
ntrights.exe -m \\mymachine -u username -r SeDenyInteractiveLogonRight
Where mymachine is the machine name for your stuck machine, and username is the user name you use to log in. When the net use command asks for credentials, I use mymachine\username and the corresponding password. This command is essential to allow ntrights.exe to gain access to your stuck machine.
Microsoft knowledge base article that deals with this problem.
Windows Server 2003 Resource Kit Tools Download
A discussion about the use of net use to gain permission