Group Policy Windows 2003 Domain

I am in a Windows 2003 domain environment. I am having trouble understanding how to edit the local group policy for all my machines on my network. If I open up the gpedit.msc from my machine I go into computer configuration–>Windows Settings–>Security Settings–>Local Policies–>Security Options. Now when that is open for instance I see that only Administrators & Power Users have access to allow format and eject removable media. Now, if I go on my domain controller and edit the domain policy and go into the same area, everything in Security Options says not defined. How can this be? Why are these different, they should be same if my machine is properly getting applied the local policy.