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timlowell,
I have multiple administrator accounts on my computer and did not have this issue. However, I never have the default administrator account showing on the welcome screen. I have that account reserved for viewing only without the welcome screen.
It must have been something unique to your setup, but it certainly was impressive investigative and corrective action you performed. Your procedure may help someone in the future.
I assume all is well now?
Yes, everything is OK for the time being.
I think most PC's are set up with the default admin account being invisible. From what I have read on the web, this is the "normal" setting in XP. For whatever reason, when I got these PC's from the leasing company, they were not set up that way, and they worked fine, so I let it be. At this point, I don't want to create another new account, because my desktop, favorites, and e-mail messages belong to the default admin account, and it doesn't appear to be trivial to transfer all that stuff. I tried that during my troubleshooting, and I kept getting error messages that certain files were in use and couldn't be copied.
Since NIS 2008 is a security application, it seems plausible to me that it wants you to revert back to the "normal" setting of hiding the default admin, which I am guessing Symantec feels is more secure. I wish Symantec would see this post and comment on that somehow so I don't keep thinking I'm crazy.
Don't go crazy over it - each system is unique in it's own way.
You were able to fix it so everything works - life is good.