Users vs. Active Directory Users

What's the difference between users and active directory users in Windows Small Business Server 2003? Which should I use to manage user accounts under which circumstances?

The difference is the source of their authentication.

• AD users are authenticated by a domain controller
• Local users are authenticated locally

As far as which to use, it depends. See Do I really need MS Active Directory?

An SBS 2003 server is a domain controller and therefore cannot have local user accounts, they are removed when the server is promoted to a DC.

SBS stores the user accounts you create, in the Users page, in a specific OU in AD. The users area in the SBS console just takes you straight to that OU and presents some wizards for creating users. Using AD Users and Computers would still get you to the same user information, but you would need to go the the SBS OU.

Its best to use the User option in the SBS console as it will ensure all your users will end up in the right area of AD, and give you wizards to do so, but you can use AD users and computers if you want.

SBS 2003 servers, do not have local user accounts, despite what the other answers say.