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Server 2000 Group Policy not applying below a certain point

By brentc76 ·
OK - I have a Windows 2000 Domain environment (mixed 2000 and XP). A PDC, and a BDC. Both are replicating to each other. whenever I create a group policy on either DC, the policy does not apply. I can also create the policy on my laptop (XP Pro SP2 using GPMC), and it does not apply either. Although, I have been able to get the policies to apply in a couple locations toward the top of the tree structure.
below is similar to my structure.

FOREST
.|_DOMAIN
....|_domain.com
.......|_Country OU
..........|_City OU
.............|_users
.............|_computers
................|_office computers
................|_office laptops
.............|_disabled computers

If I link a GPO to the domain.com, country OU, or City OU it will apply. but if I remove the link from the domain, country, or city OU, and place it further down to say.... office laptops, the GPO does not apply. I even set up a test server (domain controller) with Server 2003 and a single XP Pro box connected to it, and I get the same thing on the 2003 Environment. I am really confused, I have been on GOOGLE & Microsoft trying to find something to lead me in the right direction, but I am unable to locate anything to help me out.

Please help.

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