Folder Redirection using Windows 7 Client and Windows Server 2003 DC

Situation

Trying to introduce Windows 7 Clients into my Server 2003 environment. Having problems with Folder Redirection via GPO.

I created a Test OU which contains Two Computer accounts. One Windows 7 and One Windows XP. It also contains Two User Accounts. One Domain Admin account and one Basic User account.

On my Windows 7 Client I created a GPO and Linked it to my Test OU.

User Configuration > Policies > Windows Settings > Folder Redirection > Documents

Setting: Basic (Redirect everyone's folder to the same location)

Path: %HomeShare%%HomePath%

Grant User exclusive rights to Documents = Disabled

Move the contents of Documents to the new location = Enabled

Also apply redirection policy to Windows 2000, XP, etc = Enabled

Policy Removal Behavior = Leave Contents

Music, Pictures, and Videos = Follow the Documents folder

User Configuration > Administrative Templates > Network > Offline Files

Synchronize all offline files before logging off = Disabled

Synchronize all offline files when logging on = Disabled

User Configuration > Administrative Templates > Windows Components > Windows Explorer

Turn off Windows Libraries features that rely on indexed file data = Enabled

Folder redirection works perfectly fine on my Windows XP computer when logged in as the domain admin or basic user accounts.

Folder redirection does not work on Windows 7 with either user account. WHY???

gpresult /z > C:\Info.txt reads the following…

USER SETTINGS

CN=Test User,OU= Test,DC=DOMAINNAME,DC=prv
Last time Group Policy was applied: 9/24/2010 at 10:57:24 AM
Group Policy was applied from:      DC.DOMAINNAME.prv
Group Policy slow link threshold:   500 kbps
Domain Name:                        DOMAINNAME
Domain Type:                        Windows 2000

Applied Group Policy Objects
-----------------------------
    Default Domain Policy
    Folder Redirection
    Local Group Policy

The user is a part of the following security groups
---------------------------------------------------
    Domain Users
    Everyone
    BUILTIN\Users
    NT AUTHORITY\INTERACTIVE
    CONSOLE LOGON
    NT AUTHORITY\Authenticated Users
    This Organization
    LOCAL
    CERTSVC_DCOM_ACCESS
    Medium Mandatory Level

The user has the following security privileges
----------------------------------------------


Resultant Set Of Policies for User
-----------------------------------

    Software Installations
    ----------------------
        N/A

    Logon Scripts
    -------------
        N/A

    Logoff Scripts
    --------------
        N/A

    Public Key Policies
    -------------------
        N/A

    Administrative Templates
    ------------------------

        GPO: Folder Redirection
            KeyName:     Software\Policies\Microsoft\Windows\Explorer\DisableIndexedLibraryExperience
            Value:       1, 0, 0, 0
            State:       Enabled

    Folder Redirection
    ------------------
        N/A

    Internet Explorer Browser User Interface
    ----------------------------------------
        GPO: Default Domain Policy
            Large Animated Bitmap Name:      N/A
            Large Custom Logo Bitmap Name:   N/A
            Title BarText:                   N/A
            UserAgent Text:                  N/A
            Delete existing toolbar buttons: No

    Internet Explorer Connection
    ----------------------------
        HTTP Proxy Server:   N/A
        Secure Proxy Server: N/A
        FTP Proxy Server:    N/A
        Gopher Proxy Server: N/A
        Socks Proxy Server:  N/A
        Auto Config Enable:  No
        Enable Proxy:        No
        Use same Proxy:      No

    Internet Explorer URLs
    ----------------------
        GPO: Default Domain Policy
            Home page URL:           http://sharepoint/Pages/HomePage.aspx
            Search page URL:         N/A
            Online support page URL: N/A

    Internet Explorer Security
    --------------------------
        Always Viewable Sites:     N/A
        Password Override Enabled: False

        GPO: Default Domain Policy
            Import the current Content Ratings Settings:      No
            Import the current Security Zones Settings:       Yes
            Import current Authenticode Security Information: No
            Enable trusted publisher lockdown:                No

    Internet Explorer Programs
    --------------------------
        GPO: Default Domain Policy
            Import the current Program Settings: No

Any Ideas??????