Logging in user in Windows 2008 server using LogonUser fails on LogonType LOGON32_LOGON_SERVICE

Question

I am using LogonUser function to logon an account to Windows 2008 R2 server on a domain with clusterring.

When using LOGON32_LOGON_INTERACTIVE as LogonType, I successfully login.

When using LOGON32_LOGON_SERVICE as LogonType, Login fails, EventViewer says:

An account failed to log on. Logon Type: 5

Account For Which Logon Failed:

Security ID:        NULL SID
Account Name:       thename
Account Domain:     thedomain
Logon ID: 0x1009371c Logon Type: 5

Failure Information:
Failure Reason:     The user has not been granted the requested logon type at this machine.
Status:         0xc000015b
Sub Status:     0x0

Was not sure if its for superuser or stackoverflow (calling LogonUser from C# code), but I guess its some Windows server issue*.

EventID = 4625

Edit: Found that - 0xc000015b The user has not been granted the requested logon type (aka logon right) at this machine

Edit: Should be serverfault question...

Solution

Ok, after deep research found that in the Local Security Policy, under User Right Assignment

"Log on as a service" should be granted to users logging in with LOGON32_LOGON_SERVICE logon type.