A. A. This is caused by a mistake in the Service Pack 3 update.inf file. The entry for poledit.exe (the executable for the policy editor) is specified in the \[MustReplace.system32.files\] section whereas the file should actually be in the \[SystemRoot.files\].
To install the new Policy Editor perform the following
- Expand the service pack
- You will be asked for a directory, enter a path and click OK. A message "Extraction complete" will be displayed when completed
- Move to the directory the service pack was extracted to and copy the
file poledit.exe to the %systemroot% directory
copy poledit.exe %systemroot%
Alternatively you can update the update.inf fiile and move the location of poledit.exe from \[MustReplace.system32.files\] to \[SystemRoot.files\].