Access issues in the SharePoint portal



Hi,
I have the following problem:
Any local windows user is getting admin access to the SharePoint portal
(is able to see Actions web part(which contains links for Edit Page
etc.)
Suppose i create a user called "Dummy" in my windows server.
When I open my portal and when I put user name as "Dummy" and proper
password, I am automatically logged into the portal as an
administrator.
I haven't given ANY rights to this user on my portal.
When I click on Site Settings- Manage Security and Additional
settings(Under General Settings) -Show User information (under Users
and Permissions), i see this user name. Here I also see a user named NT
AUTHORITY/SYSTEM. But when I click on Manage Users, I don't see these
extra users.
This problem was not happenning earlier and only users having rights on
the portal were able to access it. I am sure some setting has changed
but I am not able to put my hand on it.
My IIS settings are as follows:
The portal uses MSSharePointPortalAppPool as the Application Pool and
"Network Service" as the application pool identity (I have tried
changing it to "Local Service" or "Local System", but it didn't help.

For the portal, anonymous access is disabled and Basic Authentication"
is on.

The server does not use active directory as of now and all the users
are local windows users.
Can Anyone help please.

Regards,
Munish

.



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