2000 server xp client

I am using xp clients with a 2000 server. I have created 35 users called s1 – s35. I create a mandatory profile using s1. When i log on as s2 – s35 i get a totally different profile and my group policy does not work. If i remove the profile path from s2 or any other user group policy works fine. I think it is using a local profile even though it says in user profiles that it is mandatory. Has anyone experience this before it is driving me crazy.