The evolution of this situation occured like this:
1) I forgot all about the "My Documents Redirection" in the Server Manager > Users for starters.
2) I set group policy for folder redirection for My Docs, Application Data, Start Menu, and Desktop. For all users, these folders would be redirected under the unc \\server1\users.
3) The 2 identical, new xp pro workstations in use performed oddly...the first pc synchronized all folders, as best as I could tell. The 2nd pc, logged in with the same user, did not sync at all.
4) I remembered the Server Manager > Users > My Docs Redirection and set it to redirect all users' stuff to the same path \\server1\users.
5) Both workstations began synchronizing my documents. It was a beautiful ting.
Here's the issue:
6) I was explaining to my client about where stuff "lives" on his computer (one of the workstations above). On that workstation, in c:\docs & settings\Dan (the user's name is dan) there are no Application Data or desktop folders now. There is a Start Menu item, but it is empty.
7) I disabled the GPO for folder redirection and restarted everything, but no change.
Where are the Desktop, and Application Data items? Would someone explain this to me. And better yet, how to reverse this condition!!