I got burned by this today so now it's a Weekly Dynamic, that way you'll know how to fix this.
If you login to GP, pick the company and then you get an error message that says:
Your login has been removed from the user activity file and you cannot be in the accounting system
You've got a client update problem. This happens when you've setup a client update and then the update file has been removed or deleted from it's location. I got burned when I disconnected our install drive that had SP1 and SP2 on it.
So how do you fix this? You have three options.
1) If you can figure out what update is missing, you can put the file back where it was deleted from.
2) If you can login from any workstation, go to Tools->Setup->System->Client Updates and remove or relocate the missing update.
3) If you can't login in at all, you can use SQL Query Analyzer or SQL Server Management Studio to remove the updates from the syUpdate table in the Dynamics Database.
I think I understand why this happens. All machines need to have the same updates and the update check happens before the login is complete and user interface is presented. So if system thinks the update is there and required but the file isn't present, you get an error. But at a minimum, the error should be clearer. Realistically, there should be a check first to see if the update is installed on the client. If it is, don't worry if the file is there or not.
But hey, we know this is the 1.0 version of client update. That's why they make versions.
Special thanks to the Dynamics GP Newsgroup for having solved most of this for me. I just had to find the right table.