OK, I know this thread is a few years old, but I wanted to add a loopback story. I don't remember why we set loopback for our student OU (Server 2008) but somewhere along the line we forgot that it was done. Students logging on have no access to the control panel, can't right click on the desktop, and can't adjust other settings. Well, with loopback enabled, everyone, including administrators, who logged onto a workstation in this OU had these settings applied. It was making us nuts as it took us a bit to figure out why it was doing that. Once we disabled loopback, the restrictions were once again just applied to the student accounts in the OU.
Wow, this thread was started on my son's 1st birthday, and now he's halfway through Pre-K. Windows issues are just so ... timeless!
