If group policies are NOT applied as you would expect, check the Application Event log for the following:
Event Type: Error Event Source: Userenv Event Category: None Event ID: 1058 Date: 2/12/2002 Time: 7:25:40 AM User: NT AUTHORITY\SYSTEM Computer: <ComputerName> Description: Windows cannot access the file gpt.ini for GPO CN=\{31B2F340-016D-11D2-945F-00C04FB984F9\},CN=Policies,CN=System,DC=lcds,DC=lab The file must be present at the location \\lcds.lab\Policies\\{31B2F340-016D-11D2-945F-00C04FB984F9\} (Access is denied) Group Policy processing aborted. Event Type: Error Event Source: SceCli Event Category: None Event ID: 1030 Date: 2/12/2002 Time: 7:30:46 AM User: N/A Computer: <ComputerName> Description: Windows cannot query for the list of Group Policy objects. A message that describes the reason for this was previously logged by the policy engine.If your Windows XP computer is a domain member, and the Distributed File System ( DFS) client is turned off (disabled), this behavior will occur, because the SYSVOL share requires the DFS client to make a connection.
To fix the problem, enable the DFS client:
1. Use the Registry Editor to navigate to:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Mup
2. Edit or add Value Name DisableDFS, a REG-DWORD data type. A data value of 0 means that the client is turned on. A data value of 1 disables the client.
3. Press OK and exit the Registry Editor.
4. Verify that File and Printer Sharing for Microsoft Networks is enabled on the interface:
A. Start / Network Connections.
B. Right-click the appropriate connection and press Properties.
C. On the General tab, make sure that File and Printer Sharing for Microsoft Networks is checked.
D. Press OK.
NOTE: See tip 2378.