group policy error

Both local and domain policies are implemented by DLL's, known as extensions, which reside on the local machine. There are 9 extensions in all, each dealing with a specific area of the policy - such as internet explorer settings, folder redirection,scripts (logon \ logoff, startup \ shutdown), and the one thats giving you a problem - security. When the policy is processed, individual settings are passed to the responsible extension, which then interprets the setting into an actual restriction on the machine usaually via aregistry modification). The message you are seeing is the security extension telling you it has tried to apply a setting, and failed. I have had great problems in the past trying to decipher the error codes, as Microsoft have not (to the best of my knowledge) released an article listing them. In your case, I have found 2 articles in technet that either mention your specific error, or point toward the cause -
q285903
q247482
In both cases it would appear that the problem lies in users or groups having been added to security policies. Good luck with this

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