Symptom
Classic fails to start, and you see the alert message:
"Classic Startup Failure - Classic Startup failed to start due to an error [1016]."
Note: If the affected client is managed via the Workgroup Manager feature of Mac OS X Server, see technical document 107450, "
Workgroup Manager: Managed Client Cannot Start Classic".
Solution
Update to Mac OS X 10.2.5 or later.
This occurs when application access is being restricted via the Accounts preference pane Capabilities feature (Figure 1)
Figure 1 The Accounts preference pane Capabilities sheet