XP Mode problem

Hi,

I have set up a Windows 7 machine in our network and installed the XP Mode
software on it to run some legacy software and have run into some problems.

Our set up is a Windows 7 pc logging on to our Windows 2008/2003 domain for
general netowrk and file access, I set up the XP Mode software as a
standalone pc but because it needed network access I have joined it to the
domain as well.

Now what happens is when we try to log on on as a user occaisionally it will
log on but more often then not I will get a message telling me I am not
allowed to log on interactively. I have read a few posts about this and have
as a result added the Domain User and Domain Administrator to both the
WIndows 7 PC's Administrators and Remote Desktop Users group but this has not
helped.

I am now unable to log on locally to the XP Mode PC or using a Domain
Administrator account.

Can anyone help?

Thanks,

Anthony