Hi,
I had this same exact problem myself. We have win2k and win2k3 dc's. The goal was that at a specified hour every night, users would be booted off to enforce the logon hours that we set. The only problem was that they weren't booted off. Between reading on technet and other websites, it looked like all those gp settings did was force their priveleges to access domain resources to "log off." What this means is that they couldn't access shares, etc. but it still didn't log them off of their computer. That seems kinda dumb to me. What we ended up doing was creating a couple of scripts. One script was the logoff event and one scheduled a time for it to run. In GP we put the "scheduling" script in the User Configuration--Windows Settings--logon scripts section and when the user logged on, a "one-time only" event was created that ran the logoff script. This way, at the specified time the user would be logged off and they wouldn't be able to log on to the domain, or their computer again. It has worked pretty well for us.
I'd also like to get a good explanation as to why those gp settings don't log the user off from their computer.