Although you may have seen someone enter a password to reach their desktop, by default the desktop will load automatically for you. This is because the initial installation of Windows XP asks for a username but does not prompt for a password, resulting in an auto-login for your first user account. After a password is assigned to your user or another user account as been added (through the control panel, user accounts applet) you will be taken to the Welcome Screen when you start your computer. The Windows XP Welcome Screen will be displayed where you will have to select your username (and enter your password if needed) to reach the desktop.
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