Local Policy Does Not allow logon Interactively Error message.

Hello everyone, Im hoping that someone out there can help me with a problem that I have with our Windows Server 2003 SP2 machine. I just recently started receiving the error message “Local Policy Does Not allow logon Interactively” when I try to log on locally. This happens to any account, even the Administrator account. I checked both group policy object through gpedit.msc, and local security settings through secpol.msc. Both policies have the Administrator as well as domain admins added as being allowed to log on localy. They are not on the deny access policy. I’ve tried the NTRight.exe but I get an error message. I’ve looked for similar problems but cannot find one that relates to mine. Someone please help. Thanks in advanced.