Folder Redirection with Terminal Services

We have a Windows 2008 domain. We have Windows 2008 Enterprise Terminal servers and, Windows 2008 R2 Terminal servers.

I created a GPO to redirect appdata, desktop, mydocs, etc. to a network share.

If I login the the Windows 2008 ts, the folders get created on the network share and, everything works. If I go to the start menu and click on "My Documents" it goes to the network share. If I go to the start menu, and click on the user name, it shows all the redirected folders etc. So, NTFS and Share permissions must be correct.

If I login to the Windows 2008 R2 TS, the folders get created on the network share but, if you go to the start menu and click on My Documents, it shows the contents of c:\users\username\my documents.

The Windows 2008 TS shows no errors in the evnet logs.

The Windows 2008 R2 TS shows event id 1085

Windows failed to apply the Folder Redirection settings. Folder Redirection settings might have its own log file. Please click on the "More information" link.

Ive moved servers around in AD, tried setting "Loop back processing" with both replace and merge.

Im not sure what else to try.

Any ideas?

Thanks,

Steve

Steve Peterson steve@mcmillaninc.com