WinXPsp3 patched till Oct09

Boot>>Client32>> Username>>password... ZCM Agent prompts for local u/p even though DLU is associated to user. Wait about a minute to two mins and then u/p will go through.

Second issue.
User logs in. Local windows USER. no other permissions. does their work, launches bundles off launcher.. does their thing .. blablahbla. Logs off.. next user sits down and logs in ... no WinXP group policy. simple reboot fixes this.

What am i doing wrong here? It seems like the agent is randomly crashing.. or parts of it are randomly crashing.

Thanks for any help you can provide.