Failed to open the Group Policy Object and can't access sysvol from domain?

[CoreTin]

We recently did a fresh install of SBS 2003 with Service pack. Also patched it up with latest Windows Updates. The problem we are facing is when I try accessing \\mydomain.local\sysvol, it gives me an error message saying “The
network path was not found.” At the same time if I put \\server1\sysvol, it can access it without any problem.

Also when I try running dcpol.msc, it says “Failed to open the Group Policy Object. You may not have appropriate rights.” Apart from this when I checked Event Viewer, I found Event ID 1030 and Event ID 1058.

Somebody please help me out fixing all these problems.

[Taidje]

To me it seems like some problem with NTFrs or DFS. It may even be DNS as you should be able to access the sysvol from the \\mydomain.local. Did you check GPO after this? See if there is any error in the event logs for those that might explain it? Reply back.

[CoreTin]

Hello Taidje, yes there is an error listed as mentioned below:

Error descripation is:

Event Type: Error
Event Source: Userenv
Event Category: None
Event ID: 1058
Date: 11/04/2008
Time: 14:19:01
User: NT AUTHORITY\SYSTEM
Computer: SERVER1

Description:
Windows cannot access the file gpt.ini for GPO CN={31B2F340-016D-11D2-945F-00C04FB984F9},CN=Policies,CN=System,DC=MYDOMAIN,DC=local. The file must be present at the location <\\MYDOMAIN.local\sysvol\MYDOMAIN.local\Policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\gpt.ini>. (Windows cannot find the network path. Verify that the network path is correct and the destination computer is not busy or turned off. If Windows still cannot find the network path, contact your network administrator. ).
Group Policy processing aborted.

Now what?

[Allanoo]

You need to follow the solution provided in Microsoft KB887303. They have mentioned some SMB Regedit settings without rebooting the server. I’m sure about this because I have been through this problem and after making those changes I was able to fix the problem.