Local user accounts allow users to log on and access resources on only the computer where the local user account was created.
When you create a local user account that Windows XP creates the account only in that computer's security database, called the local security database. Windows XP does not copy the local user account data to domain controllers. After the local user account exists, the computer uses its local security forces database to authenticate the local user account which allows the user to log on that computer.
Do not create local user accounts on computers that run Windows XP, which is part of a domain because the domain does not recognize local user accounts. Therefore, the user is not able to access resources in the field and the domain administrator is able to manage the local user account properties or assigning access permissions to resources available.
Built-in user accounts:
Windows XP automatically creates accounts called embedded accounts. Two commonly used built-in Administrator and Guest accounts.
1. Administrator
Use the built-in Administrator account to manage the entire computer and domain configuration, such as create and modify user accounts and groups, managing security policies, create printer and assigning permissions and rights to user accounts for access to resources.
If you are an administrator, you must create a user account that you use to perform non-administrative tasks.
Note: You can rename the Administrator account, but you can not delete it. As a best practice, you should rename the built-in Administrator account to give a greater degree of certainty. Use a name that does not identify it as an administrator account because they do not know which user account it is.
2. Guest
Use the built-in Guest account to allow occasional users to log on and access to resources. For example. An employee who needs access to resources for a short time can use the guest account This account is disabled by default. Note: The guest account is disabled by default. Enable Guest account only in low-security network and always assign it a password. You can rename the Guest account, but you can not delete it.