Managing Multiple User Profiles in Windows XP?

ALC Technician asks: "I work as a computer technician at Ferris State University, and we use Windows based systems for most of our faculty and student computers. We've been running into a lot of issues with user profiles, particularly in Windows XP, such as setting the systems up while logged in as Administrator and getting the configuration to propigate to the standard user accounts. Does anyone have any suggestions on how to give the users appropriate rights to the machine without sacrificing system security?"