Does the "LOCAL SYSTEM" account in Windows Server 2008 have less or more privileges than a local user account? What about with Windows Server 2003?Thanks.

TheLocal System account has complete unrestricted access to local resourcesand acts as the computer on the network.The Local System account is a member of the Builtin Administrators group. The Local System account is used extensively to provide services with sufficient rights.The local system account has more privileges on a local machine than any other account.

Is there anything different about the 2008 Local System account versus the 2003? Any changes in privileges, etc.?

It seems that there is no big change, since the Local System account is generally "owned" by the system itself other than any personnel.