Group Policy not applying to XP machines 2003 Server

Here's a quick rundown of the issue we're seeing here. And its a very blanketed question for the moment because Im not getting much in the way of error messages.

Trying to deploy different group policies throughout our organization here. For the moment, we're really just wanting to use it for printer deployment per machine since we have so many users moving around.
We do all of this through GP Management. Right click on the OU and "Create and Link a GPO Here…"
On the Windows 7 machines, we have no issues, it just works. But the second we try to deploy one for an OU with XP machines, we get absolutely no response at all. We an do a gpupdate /force and gpresult and see that the GPO was applied, but it doesnt reflect any changes at all. Dont get any errors at all. We just dont see any of the settings in the GPO reflected. Weve done testing with different settings and Ive moved my Win7 machine to many different groups testing the GPO on it. It applies with no issue.

Part of the problem is that we came in after another IT group and had to reverse engineer many things here. So I dont know what theyve done to the servers here to cause an issue like this, or if its even something they've done. Could just be my own ignorance.

But we would like to find out whats causing the hangup here. Id like to move beyond just using it to deploy printers.

I know its not a ton to go off of, but if someone can just point me in the right direction itd help. If any more info is needed, just let me know. Im having to be quick so I apoligize if its a bit jumbled.

Thanks