cygwin fails on Vista and Win Enterprise only, telnet "switching to user andy failed"

Hi

On Windows Vista and Win2003 SP2 Enterprise _only_ we have seen an odd thing
happening when logging on using telnet.

telnet into machine work but inside telnet prompt "switching to user andy
failed"

cygwin inetd service, who runs the telnet service, is running as "Local
System" account and interact with desktop.

Identical to other 2k3 Standard Edition Computers , this works (running
cygwin on LocalSystem account and login successfully) .

In what respect is Windows Enterprise Edition different than Standard
Edition in these service and security areas?


(I think basically the cygwin inetd NT service tries to impersonate the
other user but fails, but why ? )

We have tried to follow the cygwin setup instructions and added these rights
to Local System Account,
Create a token object
Logon as a service
Replace a process level token
Increase Quota

.... but still no joy....

Also tried to, instead of using Local System Account, using an account in
the local Administrators group, login is successful but processes (cmd, bat
etc.) that are started are not seen on the same desktop (they are shown in
taskmanager however) nor can they interact with disk or fileio since they do
not write any log files etc. (and the cmds we start typically writes loads
of log files.)

Is Win2k3 Standard edition the only one that can run cygwin successfully?

Thank you.
QA4Ever