We have a Windows 2003 DC and Windows XP as my client machines. We have implimented roaming profile. I created a new user account in an OU with no other policy applying on the OU only 1 Group policy with folder redirection. When I try to use Office it runs the setup everytime. I have checked in RSOP.msc the policy is applying. I have checked on the share (for application data) the folder is getting created. There are no errors in the event log. If I remove the policy (leaving the roaming profile enabled)then everything works fine. If I re-enable the policy after removing it once then the policy works fine. I have checked the fdeploy.log, userenv.log and the MPS reports. Was not able to find anything useful. The same issue happens with all the users and computers in my domain.
Please suggest what should be done?