You cannot log on because the logon method you are using is not allowed on this computer

To Edit the Local Policy on a Windows(2000/XP/Vista)-Based Computer

1. Click Start, and then click Run.
2. In the Open box, type gpedit.msc, and then click OK.
3. Expand Computer Configuration, expand Windows Settings, expand Security Settings, expand Local Policies, and then click User Rights Assignment.
4. In the right pane, double-click Allow log on locally.
5. Click Add User or Group, and then type User or Group then click OK.
   
   NOTE: If domain-level policy settings are defined, they may override this local policy setting.
6. Quit Group Policy Editor.
7. Restart the computer.

To Edit the Group Policy in a Domain

1. Start the Active Directory Users and Computers snap-in. To do this, click Start, point toPrograms, point to Administrative Tools, and then click Active Directory Users and Computers.
2. In the console, right-click your domain, and then click Properties.
3. Click the Group Policy tab.
4. In the Group Policy Object Links box, click the group policy for which you want to apply this setting. Click Default Domain Policy.
5. Click Edit.
6. Expand Computer Configuration, expand Windows Settings, expand Security Settings, expand Local Policies, and then click User Rights Assignment.
7. In the right pane, double-click Allow log on locally.
8. Click Add User or Group, and then type User or Group then click OK.
9. Close the Group Policy editor, and then click OK.

Troubleshooting

Group Policy changes are not immediately enforced. Group Policy background processing can take up to 5 minutes to be refreshed on domain controllers, and up to 120 minutes to be refreshed on client computers. To force background processing of Group Policy settings, use the Secedit.exe tool. To do this:

1. Click Start, and then click Run.
2. In the Open box, type cmd, and then click OK.
3. Type secedit /refreshpolicy user_policy, and then press ENTER.
4. Type secedit /refreshpolicy machine_policy, and then press ENTER.
5. Type exit, and then press ENTER to quit the command prompt.