Audit not working

NT 4.0 SP5
I can’t get the AUDIT Feature to work.

Using User Manager for Domain / Policies / Audit, I have turned on “Audit These Events.” Because it’s not working I have turned on “all” events just to get some kind of response.

I then created a test subdirectory, went to Properties / Security and set the properties on that directory to allow Domain Admins only. Then I went to the Properties / Auditing and set it to “all” options for the Domain Users.

When I finish the Properties Setup I get the message “The current audit policy does not have auditing turned on. Ask an dministrator to use User Manager to turn on auditing.”

I have turned it on. I’ve been going around in this circle for two days. Any ideas?