Using simple command line tools on a machine running Windows XP we will obtain system level 
privileges, and run the entire explorer process (Desktop), and all processes that run from it have system privileges. The system run level is higher than administrator, and has full control of the operating system and it’s kernel. On many machines this can be exploited even with the guest account. At the time I’m publishing this, I have been unable to find any other mention of people running an entire desktop as system, although I have seen some articles regarding the SYSTEM command prompt.
Why hackers should care
Local privilege escalation is useful on any system that a hacker may compromise; the system account allows for several other things that aren’t normally possible (like resetting the administrator password). Passivemode Security - home - Windows XP Privilege Escalation Exploit
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