Use this setting to control whether or not a user is given the choice to report an error. When Display Error Notification ...

"Use this setting to control whether or not a user is given the choice to report an error.

When Display Error Notification is enabled, the user will be notified that an error has occurred and will be given access to details about the error.  If the Configure Error Reporting setting is also enabled, the user will also be given the choice of whether to report the error.

When Display Error Notification is not enabled, the user will not be given the choice of whether to report the error. If the Configure Error Reporting setting is enabled, the error will be automatically reported, but the user will not be notified that an error has occurred.

Disabling this setting is useful for server machines that do not have interactive users.

If you do not configure this setting, the user will be able to adjust the setting via the control panel, which is set to 'enable notification' by default on Windows XP Personal and Windows XP Professional machines and 'disable notification' on servers.

Also, see the "Configure Error Reporting" policy."
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