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RSOP shows you what the affective policy setting is to your local computer. So if its showing up in RSOP then its being applied correctly.

Go to a computer that should be receiving the policy changes and go start/run - MMC - Add in RSOP. Run RSOP and look to what policy each setting is coming from.

You need to use Windows PE to boot the computer before the image can be loaded. You may find it easier to use a free product like BARTPE. Have you considered using Microsoft ADS? http://www.microsoft.com/windowsserver2003/technologies/management/ads/default.mspx

So you have added the "tester" user account to the "allow logon locally setting. Got it. Where did you do that at, the group policy linked to the test OU? If so, is the XP workstation you are tyring to logon to in the test OU? (it needs to be or else that setting will not be applied to the...

You do not need to add yourself to the domain admin group to login... only to the local admin group of the computer. If you want to work around this you have to modify the group policy and add your account in to the log on locally setting. If you are trying to RDP into the server you need to...