Windows Server 2008 Force VIsta Theme GPO Not working

I have a Windows 2008 Enterprise server environment.  This is the 32 bit version and the is NOT R2.  

I have a terminal server setup that I am publishing an application to for my users.  I need to get the Vista Theme enabled thru the GPO so the application will show appropriately,  The locked down Group Policy is working correctly except that the theme is not being forced.  Users are only viewing the Windows Classic Theme (which is the default).  Users do not (and cannot) have the ability to modify themes or anything on the Desktop, it is strictly locked down.

As an administrator, I can login and change to the Vista Theme without issue, but I need it to be forced thru Group Policy.

The server is recording these two errors:
Event id 9009:  The Desktop Window Manager has exited with code (0x40010004)
Event ID 9003  The Desktop Window Manager was unable to start because a composited theme is not in use

DWM is installed properly and the service continues to run even with the error.  I have tried setting GP to use the Vista Theme straight from the Domain Controller and I have tried setting it up using a shared folder from the Terminal Server itself.  The terminal server is NOT in remote administration mode.

I have used the following sites for guidance, but have found very little elsewhere, expect that this apparently works ok in Server 2008 R2.

http://social.technet.microsoft.com/Forums/en-US/winserverTS/thread/efc736fc-4af7-48bd-b8e8-5fdf4b26b589

http://serverfault.com/questions/94085/windows-server-2008-remote-desktop-error-9003-desktop-windows-manager

http://social.technet.microsoft.com/Forums/en/windowsserver2008r2general/thread/a11255a7-98d8-497d-812d-2e9f936a0901

So is it possible to get the themes forced thru GPO using Server 2008? and if so what modifications do I need to get it work?

Or does this only work in Server 2008 R2?

Any help would be much appreciated.