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BFanguyFlag for United States of America

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new windows 2008 terminal server - can not access Documents and Settings

I have two 2003 terminal servers that are locked down using a 2003 active directory domain controller group policy.

I am adding 3 new 2008 terminal servers (to replace the two 2003 terminal servers) and I placed the new terminal servers in the same "Terminal Server" Group that I have my 2003 terminal servers in - it looks like C:\Documents and Settings and c:\ProgramData\Application Data, Desktop, Documents and Favorites are being redirected.  if I try to open them I get C:\ProgramData\Desktop is not accessible.  Access is denied.  Am I to assume that these are no longer stored on the computer but are only stored in the terminal server profile directory for the users?  what about things I want for all users where do i store them?

Also, I do not have a 2008 domain controller - is it necessary to have a 2008 domain controller if you have 2008 servers?
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Darius Ghassem
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If I try to open C:\Users\All Users\Desktop I get the same error - where do i set what "All Users" need to see?
Where do you set in the GPO?
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i put the 2008 machine in a security group that has 2003 group policy settings to lock down a 2003 terminal server.
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thanks