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I'm pretty sure it was a policy imposed from the network domain but the user has administrator access on their box, how can this be?

The administrator account on the machine is disabled (again, I believe this was from the network) and a drive is missing. Booting to safe mode doesn't change anything, it's still disabled.

Google comes up with a lot of people having such problems with XP but this is 7 Pro. Even Microsoft's page on the problem is for XP and just sends you to the top on Win 7's help.

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I have ran into this issue before. You are right it is a permissions issue set up on the Policy Manager. The domain admin probably set up to where even though users are technically "administrators" on the machines, it still disables the Disk Manager for everyone except proper domain admins, or workstation admins. So the only way to access this is to either log onto the machine admin account, bypass the domain, or you would need to use your log on (granted you are a domain administrator) and then you can access the disk manager that way. Let me know if you would want to know anything else.

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