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Help granting administrator RDP access

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I have been fighting this for weeks. When logging onto a remote computer in my domain, I receive the following error:
"to logon to this computer, you must be granted the allow logon through terminal services right."

Administrator is a member of Remote Desktop Users.
Under User rights assignments, it shows the following under explanation:
"Allow log on through Terminal Services

This security setting determines which users or groups have permission to log on as a Terminal Services client.

On workstation and servers:
Remote Desktop Users.

On domain controllers:

So, Administrators are enabled by default. I added Administrator to the Administrators group even though I shouldn't need to. It made no difference.

Please help. What am I missing? This is on windows server 2003 standard. I have been able to grant any other user RDP access by adding them to the Remote Users list. The issue only occurs with the Administrator account.
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