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Blue Screen on Network Workstation

I have a Windows XP workstation that is logging into a Windows Server 2003 server. In the past couple of days it is getting a blue screen with the following error;

Event Type:         Error
Event Source:     Userenv
Event Category:  None
Event ID:              1058
Date:                    5/17/2011
Time:                    1:02:02 PM
User:                    NT AUTHORITY\SYSTEM
Computer:            RECEPTIONIST
Windows cannot access the file gpt.ini for GPO CN={31B2F340-016D-11D2-945F-00C04FG984F9},CN=Policies,DC=jacobs-singer-law,DC=local. The file must be present at the location <\\OEMSBSDN-3935.local\sysvol\OEMSBSDN-3935.local\Policies\{31B2F340-016D-11D2-945F-00C04FG984F9}\gpt.ini>. (The network path was not found.) Group Policy processing aborted.

A reboot on the Workstation is required to clear this error. It is happening a few times a day. The only thing I tried was to reboot the server, but the issue still exists. Any suggestions would be greatly appreciated.
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Robert Sutton Jr
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I am a little confused as there have been no changes made to the server for months and this is a rececnt occurence. The only thing that has happened that coincides with the errors is that the Windows XP workstaton that the errors are occurring on installed some windows updates.

I will try your suggestions above and let you know. how so I reapply GPO do I just type "gpupdate /force" at the run command?
yes, but only after checking and or correcting the issue.

I took a look at the link you provided. I have only one question, why am I getting this blue screen error on only one workstation and not the other three workstations that also login to thie same domain?

The Warlock,

I performed the steps as you laid out, I thought we were resolved but the blue screen error happened a few times from the only workstation that has had the problem. After chsnging the rights to everyone on the appropriate folder and then ran gpupdate /force. I did not reboot the server, I rebooted the workstation and the blue screen error occurred again.

I did not attempt your second suggestion, can you explain that in a little more detail and do you think that may work knowing that the first step did not resolve the issue. The only other thing that is bothering me is the fact that this is only happening on one workstation. Could this issue be a problem with the OS installation of the workstation itself?

Here are some other things to try.You may have to reboot server.