Local W2K Server Machine Policy

I have been struggling for days now with the above problem on a W2K member server. Somehow, I think due to an incorrect system restore (Citrix XP was uninstalled and took out most of OS). I am unable to get Local Policy Security Setting ie user rights etc up and running. I constantly receive an extended error.

So far I have been using Security configuration and Analysis and to import a template. I have even all but deleted the security files and logs on other test servers and have always brought it all back to life with success, so I fear the problem is much deeper.

I have also attempted to auto repair the OS but this was fruitless as well. Unfortunately, the ERD is not current.

I would be very grateful if someone could point me in the right direction without the need to do a reinstallation.

Thank you.