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Group Policy software installation fails to install on Windows 7

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We have a domain with Windows 2003 R2 and Windows 2008 R2 DCs (PDC is a Windows 2008 R2 machine), and Windows XP and Windows 7 clients.

Using the software installation facilities in Group Policy Objects we have several packages pushed onto the Windows XP and Windows 7 clients. The Windows XP clients apply these packages without problems and at the first reboot/gpupdate; but the Windows 7 clients do not. In the case of the Windows 7 clients it takes multiple reboots (or gpupdate /force /boot) for the packages to apply to the machines (and at any one time no more than three machines can apply the packages (!?); Windows XP machines will update in dozens without problems). When the application of the packages fails, there are several event errors on the client machine:

Log Name:      System
Source:        Application Management Group Policy
Date:          22/09/2010 14:47:39
Event ID:      101
Task Category: None
Level:         Warning
Keywords:      Classic
User:          SYSTEM
Computer:      lab03.stats.ox.ac.uk
Description:
The assignment of application 7-Zip 4.65 (x64 edition) (STATS) from policy computer Software (7-Zip x64) Installation GPO (2010) failed.  The error was : %%1274

followed by

Log Name:      System
Source:        Application Management Group Policy
Date:          22/09/2010 14:47:39
Event ID:      103
Task Category: None
Level:         Error
Keywords:      Classic
User:          SYSTEM
Computer:      lab03.stats.ox.ac.uk
Description:
The removal of the assignment of application 7-Zip 4.65 (x64 edition) (STATS) from policy computer Software (7-Zip x64) Installation GPO (2010) failed.  The error was : %%2

and ending in

Log Name:      System
Source:        Application Management Group Policy
Date:          22/09/2010 14:47:39
Event ID:      108
Task Category: None
Level:         Warning
Keywords:      Classic
User:          SYSTEM
Computer:      lab03.stats.ox.ac.uk
Description:
Failed to apply changes to software installation settings.  The installation of software deployed through Group Policy for this user has been delayed until the next logon because the changes must be applied before the user logon.  The error was : %%1274

and

Log Name:      System
Source:        Microsoft-Windows-GroupPolicy
Date:          22/09/2010 14:47:39
Event ID:      1112
Task Category: None
Level:         Warning
Keywords:     
User:          SYSTEM
Computer:      lab03.stats.ox.ac.uk
Description:
The Group Policy Client Side Extension Software Installation was unable to apply one or more settings because the changes must be processed before system startup or user logon. The system will wait for Group Policy processing to finish completely before the next startup or logon for this user, and this may result in slow startup and boot performance.

The "Always wait for the network at computer startup and logon" policy is already applied through another GPO (at least it seems so...).

Using "gpresult /r" shows all the machines detect that the GPOs apply to them.

As an example, one morning I started applying GPOs to 20 machines, and it took 3 hours and 20-30 "gpupdate /force /boot" for 17 of them to apply the packages in question. The remaining 3 took another 15 reboots after that. If this were Windows XP systems it would have taken 1 (maybe 2) reboots for the packages to be applied to all the systems.

Am I doing something wrong or is Windows 7 that flaky applying software installation GPOs? Has anyone else found this behaviour?

Thank you for your help.

Yours,

FD


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