Group Policy processing error on Internet Explorer Zonemapping

We have been running Windows 2003 domain with 2000 XP desktops. It looks to me that all the desktops log a particular error event in the application log that states the following:

Userenv 1085, The Group Policy client-side extension Internet Explorer Zonemapping failed to execute. Please look for any errors reported earlier by that extension.

It isnt clear if this error is causing us any issues although I do know that some PCs are not picking up the proxy server settings from group policies. I have set verbose Userenv logging on a PC and in the userenv.log we can get the following information at the same time as the event is generated.

USERENV(27c.6b8) 10:56:33:143 ProcessGPOs: -----------------------
USERENV(27c.6b8) 10:56:33:143 ProcessGPOs: Processing extension Internet
Explorer Zonemapping
USERENV(27c.6b8) 10:56:33:143 ReadStatus: Read Extension's Previous status
successfully.
USERENV(27c.6b8) 10:56:33:143 CompareGPOLists: One list is empty
USERENV(27c.6b8) 10:56:33:143 ProcessGPOList: Entering for extension
Internet Explorer Zonemapping
USERENV(27c.6b8) 10:56:33:143 UserPolicyCallback: Setting status UI to
Applying Internet Explorer Zonemapping policy...
USERENV(27c.6b8) 10:56:33:143 GetWbemServices: CoCreateInstance succeeded
USERENV(27c.6b8) 10:56:33:345 ConnectToNameSpace: ConnectServer returned 0x0
USERENV(27c.6b8) 10:56:33:515 LogExtSessionStatus: Successfully logged
Extension Session data
USERENV(27c.6b8) 10:56:33:623 ProcessGPOList: Extension Internet Explorer
Zonemapping returned 0x57.
USERENV(27c.6b8) 10:56:33:639 ProcessGPOList: Extension Internet Explorer
Zonemapping doesn't support rsop logging
USERENV(27c.6b8) 10:56:33:639 ProcessGPOs: Extension Internet Explorer
Zonemapping ProcessGroupPolicy failed, status 0x57.
USERENV(27c.6b8) 10:56:33:639 ProcessGPOs: -----------------------

have you found anything on this? i've been searching on and off for weeks; nothing else seems wrong, getting this on servers (as i log into them) as well as XP machines. All win 2k3 and r2, Domain is 2003 as is forest.