Creating User Profiles

i have an NT Server with win 95 clients.

I use user manager for domains on the server to create user profiles and place in winnt\profiles\ and get the win95 client to log on to the domain. It can log on, but system policies i created on the server for the client do not appear to work. DO i need to create the policy on the client pc or on the server? and how do i get them to work?