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Offline Files in Windows 2003 Server

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The industry is one where the files potentially have confidental information must be protected. To accomplish this, along with the user's need to have files available when they can't connect, we use offline files and encrypt them on the laptops and require dual authentication (biometric and strong passwords). It is also a requirement to limit what they can do to change their own configurations. If I could simply force them to be domain clients, period, I would. The settings are configured via the GPO, including redirecting their home directory to a network share, but with some allowance to choose exactly how and when they sync.