JSI Tip 6665. The Windows Server 2003 'Allow logon through Terminal Services' right obviates the need for granting the 'Log on locally' right.

When you grant a user the Allow logon through Terminal Services right at Computer Configuration / Windows Settings / Security Settings / Local Policies / User Rights Assignment, you no longer have to grant them the Log on locally right, which would also grant them the right to log onto the server console.