Thanks for all those who tried to help me out.

I guess we are going away from the topic. I have SQL Server Management Studio on all of the servers and I'm using it to administer the DB's. I guess you are referring Mangement Studio as SSMS? Is that right?

I will keep you posted once I see any difference with reg entries / sql server logs once I change it to 'Successful and Failed Logins'. Still I am not able to understand my current settings.

Thanks,

Philip.