Where did you apply the policy? At the domain, site or OU level?
Have you checked to make sure that all clients (user or computer) are able to read the policy?
Recall that Fodler Redirection along with Software Installation policies only apply when the client reboots.
When you use Group Policy to specify central settings you want to ensure that they are set at the client without the user being able to change them. To do this you must configure the specific Group Policy client-site extension to ?Process even if the Group Policy Object has not changed.' Has this been done?
If no changes are discovered, GPOs are not processed, but the security policies are. For security policies, there is a registry value that sets a maximum limit of how long a client can function without reapplying non-changed GPOs. By default, this setting is every 16 hours plus the randomized offset of up to 30 minutes. Even when GPOs that contain security policy settings do not change, the policy is reapplied every 16 hours.
To see if the changes are applying on target users and systems, open up a command line on a system and input the following commands:
XP Systems
Gpupdate /target:Computer
Gpupdate /target:User
Windows 2000 systems
Secedit /refreshpolicy machine_policy
Secedit /refreshpolicy user_policy
Let me know if you need further assistance with this issue.