Strange R2 DFS Question?

I have 2 Windows 2003 R2 Servers with 3 Shares Setup for DFS Replication. While testing replication with 25MB PDF files I noticed copying files to the Shares is extremely slow and copying to the C:Drive root is very fast. I found out the users mapped to the local Server 1 are somehow saving files first to remote Server2. Server 2 is a remote server on a slow WAN link. I thought the local users should save files very fast to the local Server1 DFS Share while the DFS replicates to Server2. It seems even though the users are mapped to Server1 they are really saving to Server2 like they are mapped to Server2 instead. They may be crisscrossed, I checked DNS is correct. Could this be a missing DFS setting needed?
cap7Asked:
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tigermattCommented:

DFS uses the Active Directory Sites model to ensure users always connect to the DFS replica in their local site.

Have you created separate Active Directory site objects for each site in your organisation, and bound these to the subnets of the machines located there? If not, you need to do so.

-Matt
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DatedmanCommented:
Are they copying to the DFS shares?  As tigermatt says Sites should handle this however you can also have them open the more-local copy instead of the DFS share--and schedule replication to occur a bit more slowly?
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cap7Author Commented:
They are mapped directly to the \\server1\share but it writes to the \\server2\share then replicates. thus slowing down the write process. DNS and Sites is already setup correctly. I hope to find a solution soon.
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DatedmanCommented:
You sure it's just not set to replicate immediately?  You can configure it to replicate more slowly.
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cap7Author Commented:
I applied the latest hotfixes and it started working faster after 24 hours.

http://support.microsoft.com/default.aspx?scid=kb;EN-US;958802

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cap7Author Commented:
MS Updates cause some issues tht DFS hotfixes resolved.
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Windows Server 2003

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