Windows 2000 Pro Auditing object access

I am unable to audit anything on a Win2k member server part of a mixed NT/2000 domain with Win2K PDC. Local security settings for Auditing Object Access is local settings:Success,Failure Effective settings:Success,Failure. I’ve read all the help/technet/KB articles and have done everything by the book, but still when I try to set auditing in security tab of a folder or file it says “The current Audit Policy …does not have auditing turned on…” I’ve turned on auditing in the Group Policy onthe domain controller. I am also unable to access the Active Directory from this member server, even though it logs onto the domain and shows in Net. Neighborhood. I need to AUDIT!