A local group cannot be found if it is nested inside another group on a Windows Server-based or Windows-based client
Consider the following scenario.
- You have a client computer that is running Windows Vista, Windows XP, Microsoft Windows 2000, or Windows Server 2003.
- You use Computer Management Console (Compmgmt.msc) to add a local group to the group membership of another local group on the same client. For example, you add [Power Users] to Remote Desktop Users on the same client.
In this scenario, when you click Check Names, you receive the following error message:
An Object named “[Power Users]” cannot be found. Check the selected object types and location for accuracy and ensure that you typed the object name correctly, or remove this object from the selection.
Note: In this error message, [Power Users] represents the actual local group that you are adding.
You receive this error message even though the specific local group that is mentioned in the error message may exist on the computer.
Note: This scenario applies to all local groups.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB974815.