Is there a way to allow members of the groups "Users" and "Power
Users" access to 16 bit apps (instead of using "Run As") by the way of
a GPO ?

I have a game my 4 yr old son likes to play and it runs fine under an
account with Administrator privaleges but when I change the account to
a User or Power User I get an error that it can't run a 16 bit app and
it points to his temp directory in his local settings directory.