This is what you have to do (your server must be running at all times while doing this): 1. In the AD create the user logon name of the XP machine. 2. Set whatever policies you want in GPO. 3. Log into the XP machine as administrator (or another user with administrative rights). 4. Under My Computer ---> Properties ---> Computer Name ---> Change, set the domain you created in the server. 5. Restart the XP machine when prompted. 6. After reboot, when you are presented with the "Press Ctrl+Alt+Del" popup click on "options" and choose the domain to log onto, not the local machine and instead of administrator type the user name that you have set in the AD. This would be pretty much all you need to do. You may also need to make sure that the cables connecting the 2 pc's are ok and they are in the same IP class / subnet mask. Regards, nitro