Deploying Folder Redirection with Offline Files

I'm trying to deploy Folder Redirection with Offline Files but I'm unable to do so.I've followed the document step-by-step including the group and OU names (http://technet.microsoft.com/en-us/library/jj649078.aspx) but i still get 

Cannot create folder, permission is denied. (Folder Redirection Option 0x1231). Any idea what  I can do next?