Using some sort of encryption is probably your best option, then burnning the encrypted files to disk, they would eseentialy only be able to be restored on the machine they were made on...not a great solution, but its possible i suppose.
OK guys, I found the fix for the flaw in upgraded from 2000 SP4 to XP boxes only, thanks to google!
http://www.mcse.ms/message288377.html
This documents a couple of flaws that seem to exist from an upgrade installation of 2000 SP4 to XP. Those of you too lazy to open the link, here it is...
jleste - same problem here, any documented fix for this, i've got to imagine importing the security policy from a clean install or using one of the templates would fix it, please let me know!
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