I have an AD domain set up with Server 2008 and Windows 7 clients, using group policy enforced folder redirection for My Documents with offline files enabled. This setup works perfectly for all but one user.
When offline files are disabled for this user everything works normally. As soon as offline files gets enabled the user becomes unable to access their Documents folder and system performance drops to a crawl. No synchronisation appears to be performed, despite being able to manually start a sync which claims to complete within seconds (there are at least 500MB of files to synchronise and the offline files folder on the local pc is empty). Disabling offline files and rebooting the computer restores access to files and system performance.
I have tried using a new user account with access and rights to the same network folders as the first user, and the same issue persists.
Has anyone seen anything like this before, or have any ideas what might be causing it?