HOW TO: Apply Local Policies to All Users Except Administrators on Windows Server 2003 in a Workgroup Setting

This article describes how to apply local policies to all users except administrators on a Windows Server 2003-based computer that is in a workgroup setting.

When you use a Windows Server 2003-based computer in a workgroup setting (not a domain), you may have to implement local policies on that computer that can apply to all users of that computer, but not to administrators. This exception permits the administrator to retain unlimited access and control of the computer, and also permits the administrator to restrict the users who can log on to that computer.

The Windows Server 2003-based computer must be in a workgroup setting for this procedure to work. In this situation, the domain policies cannot overwrite the local policies because the domain policies do not exist. Microsoft recommends that you make backup copies of all the files that you edit during this procedure.

ripped from : http://support.microsoft.com/kb/325351/en-us#appliesto

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