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trying to run a service (logon as admin@PC2) from PC1, when both are in work-group fails. why could this happen? OS is win-2003 and please let me know if any windows remote services have to be turned on or firewall configuration? does having PC's on same workgroup help?

let me clarify the question: I am unable to see other computers from "Services >Logon Tab> select User" Object types available are only "users, built in security principals" Location is only local computer. But this is available from mmc console..add snap in how can this be available on services control panel?

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You can't do that. The account must be from the local pc or a domain. Workgroups have no security, this is what a domain adds.

If you have no domain what you can do is create local accounts on BOTH pcs with the same username and password. Run the service using the account on the local pc and it will have access to resources on the other pc by automatically connecting with the account on the 2nd pc. With this method you must manually keep the passwords on the 2 machines in sync.

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