UserEnv error 1085 and SceCli 1202

I hae been receving error on my windows xp clients that state error Userenv 1085 (The Group Policy client-side extension Security failed to execute. Please look for any errors reported earlier by that extension.) and
SceCli 1202 (Security policies were propagated with warning. 0x4b8 : An extended error has occurred.

For best results in resolving this event, log on with a non-administrative account and search http://support.microsoft.com for "Troubleshooting Event 1202's".)

I have 2 win2k3 dc's and currently 13 xp sp2 clients. The userenv log shows the following in debug mode (I have cut out all but the portion that pertains to the error:
Time      Time Diff      Hex      text
12:50:08:681      0.500      13c.9f8      Processing extension Security
12:50:08:681      0.500      13c.9f8      Read Extension's Previous status successfully.
12:50:08:697      0.516      13c.9f8      One list is empty
12:50:08:697      0.516      13c.9f8      Entering for extension Security
12:50:08:697      0.516      13c.9f8      CoCreateInstance succeeded
12:50:08:713      0.532      13c.9f8      ConnectServer returned 0x0
12:50:08:728      0.547      13c.9f8      Successfully logged Extension Session data
12:50:09:400      1.219      13c.9f8      Extension Security returned 0x4b8.
12:50:09:400      1.219      13c.9f8      Extension Security was able to log data. RsopStatus = 0x0, dwRet = 1208, Clearing the dirty bit
12:50:09:400      1.219      13c.9f8      Extension Security ProcessGroupPolicy failed, status 0x4b8.

Any suggestions?