System Policies in NT / (95/98) clients

I am running nt4 server as a PDC that has 95/98 clients. The clients need to have system policies set up to limit access, desktops, etc. I go to the server and make changes to the default template, name it ntconfig.pol and put it in the winnt.sbs\profiles folder. That folder is shared. The clients are not affected by this. What am I doing wrong? Example…When Linda signs on as a user on a 98 client, I want to block her access to the screensaver tab on the display icon. Help….