Running 10.3.7 with two users. Both users are set to fully control the machine.
For one user, iTunes repeatedly shows the Software License Agreement on startup. No matter how many times the user clicks "Agree", it will always appear the next time they start iTunes.
Also for this user, the screen saver settings won't stick. As soon as System Preferences is quit, the settings return to what they were before.
The main user - the "owner" - doesn't have these problems.
Have repaired HD permissions thinking that a preference file wasn't allowing this user to write to it, but that didn't solve the problem.
It sounds like a permission problem somewhere in the Preferences folder. Can you check the permissions on the Preferences folder and the two .plist files I mentioned? Just click on the folder/file and choose File -> Get Info (Command-I) and click the arrow beside Ownership and Priveleges and see what it says you can do.
That's what I thought too - and what I hoped a Disk Utility permissions repair would have resolved. The permissions on both the Preferences folder and the parent Library folder are both correctly set as owned by the appropriate user. Get Info says "You can: Read & Write" for both folders.