Microsoft Knowledge Base Article 313434 contains the following summary:
This step-by-step article describes how to define security templates in the Security Templates snap-in.
You can configure Windows 2000 system security by applying security templates. Security templates are text-based files that contain security settings for all of the security areas that are supported by the Security Configuration tool set. The Security Configuration tool set includes the following components:
|•||The Security Templates MMC snap-in|
|•||The Security Configuration and Analysis snap-in|
|•||The Secedit.exe command-line utility|
|•||Security Settings extension to Group Policy|
Security Templates can be used as provided, or you can create your own custom security templates by modifying the configuration of the built-in security templates. After you make changes to the security template, you can apply the changes to the system configuration. Security Templates can be applied to a local computer, a domain or an organizational unit.