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This is generally caused by a firewall issue. Please verify that you can access the SYSVOL folder on a DC with in your site.
Solution?Correct all firewall ports and ensure access to the SYSVOL folder.Useful links:
User group policy is applied to the OU where the user's account is contained. Only enterprise administrators have access to link GPOs to that OU. Loopback processing enables you to set User group policies to the OU where the computer account resides and have them apply to a user on log on.
Solution?
Enable User Group Policy loopback processing mode and set it to Merge. You will find this located under Computer Configuration/Administrative Templates/System/Group Policy/.
Useful links:
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Last revised: Tuesday, March 14, 2006.