Question on how to use Loopback in Group Policy

I want to turn off the password protect for screen savers for a group of Term Services users, so if they have the window minimized for a while, it won't require them to put their passwords back in.  Now I found the GPO to do this, but I don't want it applied when they logon to their local PC's.  After doing a little research, it appears this is possible with the use of the User Group Policy loopback processing mode policy.  I'm just not 100% clear on how you do this.  If the term server is in it's own OU, do I set the Loopback policy on that OU, and then apply the user screen saver policy on that OU as well?
Go-GBSAsked:
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Adam BrownConnect With a Mentor Sr Solutions ArchitectCommented:
The loopback policy needs to be set in the GPO that you set the setting in. It will only apply to that GPO. So you would create a GPO with the setting you want, enable the loopback policy processing setting, and link it to the OU with the terminal servers in it.
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snusgubbenConnect With a Mentor Commented:
That's the way to do it. You have to decide if you want to use Replace or Merge mode.

With merge it will merge the user configuration set in the loopback GPO with the user configuration from other GPOs. If you choose Replace only user configuration set in the loopback GPO will apply.
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