I have read alot of documents but can't seem to solve this problem...

I'm trying to setup LS for use on a 2nd user account, I've used Omar's Installer and tried doing the registry editing manually but when logging in as the LS user all I get is the file manager portion of Explorer. No taskbar and no LS.
Previous to all of this I had tried and eventually uninstalled both LS and ShellOn and had the same problem (no taskbar) with all users. To fix this I had to

change:
HKEY_LOCAL_MACHINE - Software\Microsoft\Windows NT\CurrentVersion\Winlogon - Shell

to "explorer.exe"

and using gpedit.msc, change
User Configuration - Administrative Templates - System - Custom User Interface

to "explorer.exe"

Is that what both of those should be set at or what should they be instead? I'm afraid that if I change one of those again I'll end up with the same problem of having no taskbar for my non-LS user accounts.

http://www.brembs.net/litestep/win2k.html

I tried the instructions on that site again but still had no luck. I think giving up may be my only option now

The problem ended up being that in gpedit.msc, User Configuration - Administrative Templates - System - Custom User Interface should have been set to "Not Configured" instead of Explorer.exe. That allows the non-LS users to use Explorer, and lets LS work for the LS user

Ah, good to know. Thanks for posting back. :)

alternately, you could setup seperate group policies to have different shells.

like you found though, it's bad to mix reg' editing with changing group policies - has to be one or the other :)