Symptom
Managed Mac OS X clients cannot use Classic when access to Applications are managed. This is configured in Workgroup Manager.
When Classic is configured to start at login, it will appear in the Dock and then disappear. When Classic is started from System Preferences, an "error 1016" message appears.
Note: For affected computers that are not managed via Workgroup Manager, see technical document 107442, "
Mac OS X 10.2: 'Error 1016', Classic Fails to Start When Managing Applications".
Solution
This issue is resolved by updating client computers to Mac OS X 10.2.5.