Much more common in our labs are standalone (not part of a domain) Windows 2000 and Windows XP computers. The procedure for these computers (based on "Help and Support Center" from Windows XP):
Log on as an administrator
Click Start, click Run, type mmc /a (note the space between mmc and /a), and then click OK.
On the File menu, click Add/Remove Snap-in, and then click Add.
Under Snap-in, click Group Policy, and then click Add.
In Select Group Policy Object, click Local Computer, click Finish, click Close, and then click OK.
At this point, you might want to save this console for further use. Note you can add multiple snap-in and manage multiple computers from this console. I find it rather useful myself.
On the left hand side, navigate to Local Computer Policy > Computer Configuration > Windows Settings > Security Settings > Local Policies > Audit Policy
On the right hand side, double-click "Audit Logon Events"
Check the boxes for Success and Failure, click OK
You can close the Microsoft Management Console, though you might want to snoop through the other possible settings first.
Note that if your computer is part of a domain, the settings for the domain take precedence over those for the local computer, so you won't be able to set this yourself -- discuss it with your friendly domain administrator.
