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Can an application running under Localsystem account access the other

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I am using GFI Event Manager for centralized monitoring of our systems over the LAN. GFI Event Manager requires that it should run under the Domain Admin account & the remote registry service is running on the client machines. I wanted to know that can we run the GFI Event Manager under localsystem account. Because when I run this service under localsystem account on our DC 2003 server, I am not getting events from the remote machines. Can you please help me out what are the access privileges of localsystem account which is running on the Domain Controller?
Thanks in advance
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