USERENV error - Group Policy

I dont know why I am getting the below error on 2 domain member that I have on Windows 2003 Server SP1:

Event Type: Error
Event Source: Userenv
Event Category: None
Event ID: 1058
Date: 6.12.2006
Time: 9:01:57
User: NT AUTHORITY\SYSTEM
Computer: RIVER03
Description:
Windows cannot access the file gpt.ini for GPO

CN={33B07064-3C8C-4337-BD6A-3425D3FB0B18},CN=Policies,CN=System,DC=river,DC=local.
The file must be present at the location
<\\river.local\SysVol\river.local\Policies\{33B07064-3C8C-4337-BD6A-3425D3FB0B18}\gpt.ini>. (Access is denied. ). Group Policy processing aborted.

Can anyone please help me out?

Have you checked whether DFS and Netlogon services are started and domain controllers have the read and apply rights to the Domain Controllers Policy? Also, whether the DC has 2 NICs? Did you check the bindings by opening network connections and going to Advanced > Advanced Settings and tried the gpupdate /force command.

If it is a Domain controller then ensure that the below components are started:

1. Netlogon and DFS services are started.
2. Domain controllers have the read and apply rights to the Domain Controllers Policy.
3. NTFS file system permissions and share permissions are set correctly on the Sysvol share.
4. Event ID 1000, 1001 is logged every five minutes in the Application event log
   http://support.microsoft.com/Default.aspx?id=290647
5. DNS entries are correct for the domain controllers
6. From cmd, type dfsutil /PurgeMupCache, and then press ENTER.
7. Make sure that you have the latest Service Pack Installed.
   http://support.microsoft.com/kb/889100/
8. Also take a look at Registry Change (WaitForNetwork) as described here Group Policy processing does not work and events 1030 and 1058 are logged in the Application log of a domain controller
   http://support.microsoft.com/kb/842804/en-us