No settings defined? Yes they are!

Hello, 2003 domain/forest running 2x2003 DCs and 2x2008R2 DCs.

When Logged into a 2008 r2 DC I create a computer GPO to define log on as a service rights.  When I click on the settings tab it says there are no settings defined.  When I apply the policy it says filtered because no settings defined.  There are clearly settings defined.

What gives?

thanks