Im trying to add users on to the allow log on through terminal services policy but its locked, im logged in as the administrator on the computer but the security settings are locked does anyone know why this could be happening or how to fix this? any help would be appreciated. Thanks

Have you added the Terminal Services role? Otherwise it's only remote administration, and hence you cannot add any users.

You will see the setting is grey out or you cannot modify it when the setting had being configured in a GPO at domain level. If you want to modify local security settings without modify the GPO, you can make the changes using Security Configuration and Analysis MMC. You do not need to add Terminal Services role if you just want to provide the user the rights to logon using remote desktop for administration. Terminal services role is required only when you need to provide more then2 users logon through terminal services. You can provide a user logon using remote desktop using following steps: For Windows Server 2003, right click My Computer, select Properties, select Remote tab, ticket the check box for Enable Remote Desktop and click on "Select Remote Users" to add user who should have access. For Windows Server 2008, use either one of following options: -right click Computer, select Advanced system settings, select Remote tab - from Server Manager, click on the link for "Configure Remote Desktop" Select allow connections and click "Select Users" button to add user who should have remote desktop access