Unable to logon in Windows XP

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sphinx

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Have a computer thats giving a very confusing problem. I get the error message "The local policy of this system does not permit you to logon interactively." Never really seen something like this before. The one that I can tell you that works is if you do a repair install of Windows you can create a new user and can logon normally. I then tried to transfer the profile from the old user account to the new user account but it still occurs. I have also tried going in through BART PE and replacing both the SAM and SECURITY files from the "repair" folder and throwing them into the system\config folder. This did not help either. I beleive this has something to do with lsass.exe. Anyone got an idea !?!
 
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