i have windows 2003 enterprise and SBS domain controller in same domain, it doesn't allow administrator to logon giving an error policy doesnot allow you to logon interactivily. i have tried to alterred the domain controller and group plicy to specifically assign the logon right to the admin eventhough it is there by default, but didnt work. Any has seen this before ???

Have you seen this support article: "The local policy of this system does not permit you to logon interactively" error message when you try to log on to a computer that is running Windows Small Business Server 2003 by using an Administrator account Seems to be a known issue ;)