I thought I had a handle on loopback processing mode but now I'm starting to wonder.
I have created a group policy using group policy preferences to map a network drive and set it at the domain level. Works fine.
In a separate OU, I have two terminal servers. I have created a couple GPOs for various things (none having to do with Preferences) and have loopback replace mode enabled. It was my understanding that since loopback replace is enabled for the terminal servers, that any user that logs into the terminal servers will only have the GPOs applied that are applied to the OU that contains the terminal servers and all other GPOs - specifically the one that mapes the drive - would be ignored. In other words, I would expect that the drive mapping policy would not take place for users when logging into the terminal server. But they do. If I have three GPO applied to the OU containing the terminal servers, do all of those GPOs have to have loopback enabled?
Which brings up another question. If loopback is enabled for an OU, what happes with default domain policy etc? Are all of those settings ignored too?
What am I missing?