We have recently added two 2008 R2 DC's to our domain and went through the process of updating our schema and everything else that it requires. We still have two 2003 DC's. Our forest and domain function level are at 2003. I can see and create group policies on all the DC's but the policies do not get created in the c\Windows\SYSVOL\sysvol\DOMAIN\Policies directory on the 2008 R2 DC's. They do get created in the directories on the 2003 DC's. All of the policies that existed when the 2008 R2 servers were promoted to domain controllers did copy over but any new policies do not get created in the sysvol directory on the 2008 R2 DC's. For now I can copy the directories for the new policies from the 2003 DC to the 2008 R2 DC but that is not acceptable since the 2003 DC's are going away. Is this because we are not at the 2008 function level for our domain or have I missed something?