Identifying the Error
1. Click the 'Start' button, type 'Event Viewer' into the 'Search programs and files' box and press 'Enter.' This opens the Event Viewer window. From here, you can check the Directory Services log for details of the event ID 1003 error.
2. Click the arrow to expand 'Windows Logs' in the left-hand pane of the Event Viewer and select 'System' from the sub-directory. In the central 'System' pane, you will see a list of events encountered by your computer. To confirm your error as an event ID 1003, click on 'Event ID' to sort the list and scroll until you see the 1003 error.

3. Click to highlight the 1003 event ID from the list in the central pane, and click 'Event Properties' in the right-hand 'Actions' pane. Read through the event's properties, if it is an event ID 1003 source system error that your computer encountered, checking the Directory Services event log should reveal the following event details in the 'General' tab:Log Name: SystemSource: SceCliEvent ID: 1003Description: Policy change from LSA/SAM can't be saved in the policy storage. Error
to save policy change in the local GPO database.
4. Exit the Event Viewer.
Resolving the Error
5. Create a new folder named 'OldSecurity' in directory ''C:\Windows\Security' in which to back up your existing security settings.
6. Open directory 'C:\Windows\Security\Logs' and select all of the files currently stored in the directory. Move the selected files to your new folder 'C:\Windows\Security\OldSecurity.' If you receive the prompt 'Provide administrator access,' click the 'Continue' button.
7. Open directory 'C:\Windows\Security\Database' and move the file 'secedit.sdb' to your new folder 'C:\Windows\Security\OldSecurity' and change the file extension from '.sdb' to the '.old' extension. Click 'Continue' as above if you need to provide administrator access.
8. Click the 'Start' button, type 'mmc' into the 'Search programs and files' box and press 'Enter.' This loads the Microsoft Management Console.
9. Click 'File' from the menu bar and select 'Add/Remove Snap-in' from the drop-down menu. Select the 'Security Configuration and Analysis' snap-in from the list of 'Available snap-ins' and click the 'Add' button. Click 'OK' once you see your selected snap-in appear in the 'Selected snap-ins' list.
10. Right-click on 'Security Configuration and Analysis' in the MMC main screen and select 'Open Database.' Navigate to 'C:\Windows\Security\Database,' type 'Secedit.sdb' into the 'File name' box and click 'Open.'
11. Follow prompts to select 'Setup security.inf' to import a template. If you receive any 'Access denied' errors, you can ignore these. Right-click on 'Security Configuration and Analysis' in the MMC main screen and select 'Configure Computer Now.' Restart your computer when this completes.