Currently we use Windows XP for most of our client PCs and most of our Domain Controllers were Windows Server 2003.
We have recently introduced our first Windows 2008 DC and WIndows 7 clients.
The problem is we're having is with the redirected folders.
The users have mandatory profiles, but the Application Data, Work Folders and Start Menus are redirected.
When the users login to a Windows 7 PC they get the error pictured below when they login and a folder is created in the start menu called $RECYCLE.BIN (if its not already present).
The $RECYCLE.BIN is created for all users who use that redirected Start Menu.
The error contains the path to the start menu.
The start menu still redirects OK.