Question : Logon failure when trying to launch an application

This site runs a Windows server 2008 box with terminal services enabled. All users access one application via terminal services, either accross the LAN or the Web. No users have an issue logging onto the RDP session, the issue occurs when they try to launch a particular application.
Upon double clicking the shortcut the User Account Control window appears with the usual "A program needs your permission to continue" & password prompt. Upon entering the users password  this error appears "Logon failure: The user has not been granted the requested logon type on this computer."
The Security event log also show the following,

Log Name:      Security
Source:        Microsoft-Windows-Security-Auditing
Date:          14/05/2010 3:07:00 PM
Event ID:      4625
Task Category: Logon
Level:         Information
Keywords:      Audit Failure
User:          N/A
Computer:      Srv01.domain.local
An account failed to log on.

      Security ID:            SYSTEM
      Account Name:            SRV01$
      Account Domain:            Domain
      Logon ID:            0x3e7

Logon Type:                  2

Account For Which Logon Failed:
      Security ID:            NULL SID
      Account Name:            perks
      Account Domain:            Domain

Failure Information:
      Failure Reason:            The user has not been granted the requested logon type at this machine.
      Status:                  0xc000015b
      Sub Status:            0x0

Process Information:
      Caller Process ID:      0x750
      Caller Process Name:      C:\Windows\System32\consent.exe

Network Information:
      Workstation Name:      SRV01
      Source Network Address:      ::1
      Source Port:            0

Detailed Authentication Information:
      Logon Process:            CredPro
      Authentication Package:      Negotiate
      Transited Services:      -
      Package Name (NTLM only):      -
      Key Length:            0

This event is generated when a logon request fails. It is generated on the computer where access was attempted.

The Subject fields indicate the account on the local system which requested the logon. This is most commonly a service such as the Server service, or a local process such as Winlogon.exe or Services.exe.

The Logon Type field indicates the kind of logon that was requested. The most common types are 2 (interactive) and 3 (network).

The Process Information fields indicate which account and process on the system requested the logon.

The Network Information fields indicate where a remote logon request originated. Workstation name is not always available and may be left blank in some cases.

The authentication information fields provide detailed information about this specific logon request.
      - Transited services indicate which intermediate services have participated in this logon request.
      - Package name indicates which sub-protocol was used among the NTLM protocols.
      - Key length indicates the length of the generated session key. This will be 0 if no session key was requested.
Event Xml:
<Event xmlns="">
    <Provider Name="Microsoft-Windows-Security-Auditing" Guid="{54849625-5478-4994-a5ba-3e3b0328c30d}" />
    <TimeCreated SystemTime="2010-05-14T05:37:00.021Z" />
    <Correlation />
    <Execution ProcessID="612" ThreadID="7332" />
    <Security />
    <Data Name="SubjectUserSid">S-1-5-18</Data>
    <Data Name="SubjectUserName">SRV01$</Data>
    <Data Name="SubjectDomainName">AGD</Data>
    <Data Name="SubjectLogonId">0x3e7</Data>
    <Data Name="TargetUserSid">S-1-0-0</Data>
    <Data Name="TargetUserName">perks</Data>
    <Data Name="TargetDomainName">AGD</Data>
    <Data Name="Status">0xc000015b</Data>
    <Data Name="FailureReason">%%2308</Data>
    <Data Name="SubStatus">0x0</Data>
    <Data Name="LogonType">2</Data>
    <Data Name="LogonProcessName">CredPro</Data>
    <Data Name="AuthenticationPackageName">Negotiate</Data>
    <Data Name="WorkstationName">SRV01</Data>
    <Data Name="TransmittedServices">-</Data>
    <Data Name="LmPackageName">-</Data>
    <Data Name="KeyLength">0</Data>
    <Data Name="ProcessId">0x750</Data>
    <Data Name="ProcessName">C:\Windows\System32\consent.exe</Data>
    <Data Name="IpAddress">::1</Data>
    <Data Name="IpPort">0</Data>

The error seems to point to an issue with network access permissions, but the user can logon to the server & use other applications. If I grant the user Administrative privlidges the application runs fine.
This issue occurs for new user accounts that we create & for the General Manager, whose account was one of the original accounts.
These users have the same group membership as other standard domain users, that can run the application.
Can anyone assist?

Answer : Logon failure when trying to launch an application

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