Disables System Policy designed for Windows NT 4.0 and earlier. In Windows 2000 Professional and Windows XP Professional, ...

"Disables System Policy designed for Windows NT 4.0 and earlier.

In Windows 2000 Professional and Windows XP Professional, Group Policy replace the System Policy that System Policy Editor created on Windows NT 4.0 and earlier. However, Windows 2000 Professional and Windows XP Professional continues to support System Policy for installations that use them.

If you enable this setting, the system does not recognize or implement System Policy. However, it continues its full support for Group Policy. Note: If a computer is a member of an Active Directory, it will also not process System Policy."
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