Win 2000 Server users getting access denied errors

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I have a new server running MS Win 2000 with 4 desktops running MS Win XP. The problem is when users are logged into the network they do not have any permissions to do anything! Can't write to the HDD, change date & time, create and save files!

I have given them every permission on the server I can think of, still no go. I also cannot make their logon ID's administrators (or power users) on their desktop. I have turned off the firewall on the desktops (router has a firewall).

I am at a loss on what to do next. This is critical for running the office!
Any help appreciated.
 
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