Please Help- windows password issue

I was not getting any replies over in the Windows XP forum, so i decided to delete my post over there and re-post it here.

I have Windows XP Pro, and I have 2 account names. both are administrative acconts with full access, and they dont have hidden files from each other.

"User 1" has no password.
"User 2" has a password.

my wife and i are the only ones using the pc, and i created the 'user 2' account, as i could not logon with remote desktop without a password. I created the user 2 account with a password solely for remote administration.

Now herein lies the problem.

If i am home, and log in with the "user 2" account, open up some programs, and then use the 'switch user' option so I can login to the "user 1" acount- it ask me for a password. As this account has no password at all, i cannot get in. leaving it blank gives you the "did you forget your password?" message. I can however, go back into the "user 2" account, create a password for the "user 1" account, and then login with that password. (still with me? )the only other way to get into the "user 1" account is to reboot windows--- it then lets me go into the "user 1" acount without asking for a password.

I have all the updates applied that are available for windows xp thru Windows update, Im not using the classic logon screen, and the guest account is turned off.

Has anyone run into this, and if so, what is causing this? For now, i just put a password on both accounts so this stops happening, but would like to go back to now password on "user 1"

I`m sure theres been a past posting about not having admin password in XP and it causing problems it sounds familiar,it could well be this way by design[being an NT based system and all].
Have you an aversion to setting a password for admin and setting it to auto log on?

Archer-- yes, i do have an aversion to setting up an admin password and having it autologon.

I am using remote desktop. having the system setup with an admin password and having it autologon would be a security risk IMHO.

However, with 2 accounts, one with a password (the one i use for remote desktop) and one without, i can use the non-passworded account to quickly log in, and the passworded account i can log into to my pc from work.

as for past postings about not having an admin password, there was an issue with oem systems taht had been syspreped, not used an admin password, and then recovery console does not work, but MS resolved that with one of their hotfixes.

i dont know if it helps but this link refers to making log on rights: <a href="http://search.microsoft.com/gomsuri.asp?n=2&c=rp_Results&siteid=us/itresources&target=http://www.microsoft.com/TechNet/prodtechnol/winxppro/reskit/prnd_urs_wyxu.asp" target="_blank">MS Technet</a>
Logon Rights Logon rights control how security principals are allowed access to the computer — whether from the keyboard or through a network connection, or whether as a service or as a batch job. For each logon method, there exists a pair of logon rights

Or this one <a href="http://search.microsoft.com/gomsuri.asp?n=7&c=rp_Results&siteid=us/itresources&target=http://support.microsoft.com/support/kb/articles/Q318/0/26.ASP" target="_blank">MS Technet</a>
Passwords Are Unexpectedly Assigned to User Accounts After You Upgrade to Windows XP (Q318026)
This later one seems to be down at the momment so i can only provide the link.

Thanks, but the above does not fit the description of the problem.

Has anyone at all run into this?