The user profile service failed the logon

We have recently upgraded a network PC to windows vista from windows xp but we have maintained networking on the local domain. The problem is that only administrator are able to can log onto the PC and other users are not. They get an error message saying "The user profile service failed the logon". Other users can see services running in MMC and network is active on PC as well. We are not able to make out if there is something wrong with the network or there is something wrong with windows vista. Hope someone over here will be able to help me out, thanks in advance for any help.

Can you just go through the event viewer and post the suspicious error form there?? Errors in event viewer will help me understanding your issue better and i will try to help you accordingly.

This is what i see in Event viewer:
Event ID 1500 - Windows cannot log you on because your profile cannot be loaded.
Windows cannot locate server copy of your roaming profile
Application Event Viewer has the Event ID: 1521 - Description: Windows cannot locate the server copy of your roaming profile and is attempting to log you on ...
Event ID 1521 - Description: Windows cannot locate the server copy of your roaming profile Event ID 1586 - The destination server is currently rejecting.

It seems as if there is something wrong with permissions. Other system are not able to access the directory where users profile along with user's credentials might be stored. If that's the case then you will have to give all users the "Create Folders / Append Data" for all that directory, so that they can create profile folder.