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GPP desktop icons failing with error 0x80070002

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Hi!

I have created a new Remote Desktop services server to setup in a farm. I haven't created the farm yet, as I wanted to test everything first.

I have placed the new server in same OU as existing server. On existing server desktop icons are added perfectly at user login using a GPP. Users can delete icons but at new login they are applied to desktop again by the GPP.
Same GPP is applied to new server, but when a user logs in, the error:

The user 'Desktop icons' preference item in the 'Desktop icons {6710FD1C-43D6-5F64-87DB-47188166CDB2}' Group Policy object did not apply because it failed with error code '0x80070002 The system cannot find the file specified.' This error was suppressed.

is logged in the eventlog.

What is the difference between new and old server since I'm experiencing this problem ?
Both servers are fully patched will all Windows updates available. Same applications is installed. RSOP shows that same GPP's are applied to both servers....


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