Each user can have his/her own desktop background and desktop icons, so I don't see why it wouldn't allow you to use different screen resolutions. I'll be off work in ten minutes, I'll then give it a try on this computer running XP Pro, but that shouldn't make a difference.
Okay, I've tried it and unfortunately with Windows XP as it is, you can't have different resolutions per user. Maybe there's a way to get it done using a tweaker or a hack in the Windows registry, but I'm not aware of either.
Roland and Richard, Thanks for the replies. It is unfortunate that it isn't included with XP itself. This isn't my PC so I don't think I will be making any changes to it by installing third party applications.