Domain vs Local Log On

We have a small network (40 users). About half log onto the domain when they sign in and about half sign on locally. It hasn't been a problem since they've all still been able to access network shares, but with our network growing, having everyone log into the domain instead of locally will be easier administratively.

When I've changed users from logging local to logging domain in the past, I've simply copied over their My Docs, pst, and any desktop icons they had. This is easy but time intensive.

Is there an easy way to copy their local profile and make it the profile they sign in on when signing onto the domain?

Server 2003 Standard SP2. All clients are running XP Pro SP2.