I don't know if you can use it locally because it is the same thing as a roaming profile, except its more locked down because it does not allow users to change the profile.
However, maybe it is worth a try. Try this, log in as an administrator to the machine.
(Note: The administrator' profile path is C:\Documents and Settings\Administrator)
1. Click Start menu, click Control Panel, click Performance and Maintenance, and then click Administrative Tools.
2. Double-click Computer Management.
3. In the console tree, double-click Computer Management, double-click System Tools, double-click Local Users and Groups, and then double-click Users.
4. Right-click the user account that you want to modify, and then click Properties.
5. On the Profile tab, in the profile path, type the location of the profile that you want to assign...
For all users type C:\Documents and Settings\Administrator.
This will point to the Administrator's profile for all users...
To make it a Mandatory profile, simply go to C:\Documents and Settings\Administrator, and rename NTUSER.DAT to NTUSER.MAN.
By the way, NTUSER.DAT is a hidden file, so you have to allow to view hidden files in Folder Views.
I have never tried this before on a stand alone machine, so let me know how it goes.