Unable to login interactively in WinXP

We have a problem with one of the PCs that was just re-imaged on our network with Win XP. When users try to login, they get a "The local security policies prevents user to login interactively" error. When the user is added on the local box as Administrator, the user can login fine. Power User, User or Guest groups doesn’t work. The weird thing is that before the re-image everybody could log in fine under the Power User and User groups. I’ve checked on Microsoft support, but can’t seem to find the exact problem. They mention something about adding the user’s to Remote Desktop Users group, but that is going to add problems again with security and when another user is logged on. Does anybody have any solution to this problem?

Under Local security policies, user rights assingment check that Power Users are active on the "Allow local login policy" and not on the "Deny local login policy". Im not expert, just had a quick look for anything i though might cause a problem.

have you tried reimaging the system?
are the network name, domain, dns settings all correct?
have you added it to the DC?
just a few ideas..

Just finished reimaging the machine, still not working. The network name, DNS, ext. are fine. Will check the local policy settings now.

If the users are logging on interactively/remote desktop and not locally then they must be added to the remote desktop users group, have had this prob ocassionally.