Setting up a terminal server in a new domain using all Windows 2003 R2 operating systems. Created an OU for it. Moved the server into the Terminal Servers OU. Set new Group Policy (TSPolicy) for the OU, enabled local loopback and edited various other policy items for lockdown. Problem is that the policy is not being applied when a user logs in. The GPResult information shows that the TSPolicy is Denied (Security). So I check the security settings on the OU and the group policy is set to Read and Apply for the user group. So in the end only the Default Domain Policy is applied.
Any suggestions for troubleshooting would be appreciated. Thanks.