Can't force IE to be the default browser with GPO.

I'm trying to force IE to be the default browser on my domain. I've set the Default Domain Policy to use IE, but it never gets changes on any of my clients. I'm running a mix of XP Pro and Win 7 Pro 32 & 64 bit.

I've read a ton of threads and they all say the same thing as this site. http://social.technet.microsoft.com/Forums/en/winserverGP/thread/e63fe81b-1ad8-4303-ad1d-e2f6e3d8cb0a

When I click on Import and then Modify settings, the "make default" button is greyed out and the tell me if IE isn't the default browser is checked. I've run gpupdate /force about 10 times on my server and PC. rebooted my PC a couple times too. When I run RSOP on a client the only thing that shows is this:

Here is my Default Domain Policy: