Win 2k + nt 4.0 server

Have Win 2K professional computer named ABCD that I want to connect to
server XYZ (running NT 4.0). I use the same administrator password on
the Win2K machine as the NT server, and I automatically log into both
machines. However, when I try to add a user to the Win2K machine
(USER1) that already has access as a user on the NT server with the same
password, it appears that I can either log in to the local machine
(ABCD) or the server XYZ, but not both simultaneously. If I set the
user up as a member of the domain of the server, then the user's name
becomes USER1.XYZ on the WIN2K machine (documents and
settings\user1.xyz\my documents) instead of "documents and
settings\user1\my documents". If I set the user up as a member of the
domain using the name of the computer, I have it correct, however the
user can not log into the NT server (run a program that requires the
user to be logged into the server). Under "passwords and users" I get
the following:

administrator ABCD administrators
guest ABCD built in account
User1 XYZ power user (where the password is
controlled by "user manager" on the server XYZ)
User1 ABCD power user (where ABCD is the given
name of the local Win2K computer)
--
Looking at a previous install (with another machine) it appears to work
correctly with USER1 XYZ, however, this machine comes up with
USER1.XYZ which can't be edited as the user.