In order to add, remove or edit users in Windows you need to make sure you have the proper permissions first of all, and then you need to know where to go to make these changes. This method will vary between Windows 2000, XP Home and XP Professional.
To add a user in Windows XP Home you can go to Start, Settings, Control Panel or to Start, Control Panel and then to user accounts. You will see a window like the following:

From here you can add a new user, change an existing user, change the picture used for that user account, assign passwords and change the way users log on.
The Windows XP Pro and 2000 user screen is setup differently because you have greater flexibility with your user settings and permissions. This is a sample of the User Accounts settings from Control Panel.
You can also right click the My Computer icon and pick Manage to get to your user settings. This is also how you would manage your user accounts in Windows 2000.

From here you can right click a user to change that user's password. You can also double click a user and change properties such as password settings and group memberships.

Related Tips:
Disabling Vista’s User Account Control (UAC)
Create a Windows XP Password Reset Disk
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