Folder Redirection not Working on New PC

We have a 2003 server as DC and we have folder redirection set as follows for both "Desktop" and "My Documents":-

GP Confiig
This redirection is working fine on all the existing workstations. However I have just joined a new Windows 7 64 bit workstation to the domain and redirection fails to work. I can browse to the relevant folders on the sever on the PC with no problem so there does not appear to be a permissions problem. The Share and NTFS permissions on the share seem right as per the MS documentation How to dynamically create security-enhanced redirected folders by using folder redirection in Windows 2000 and in Windows Server 2003:-

Share permissions
NTFS Permissions
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cescentmanAsked:
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James_3Connect With a Mentor Commented:
You should get errors in the event log for folder redirection if you are having a specific problem with that one computer. I would recommend updating your policies to properly support windows 7 though as this adds many extra settings including for folder redirection. Check that the correct policies that you expect are being applied by using gpresult /r at command prompt
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James_3Commented:
Windows 7 uses different group policies which you would need windows server 2008 to be able to deploy. You will need to install windows server 2008 and copy the policies from that to the central store to manage this correctly.
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cescentmanAuthor Commented:
Are you sure about that, the rest of the workstations (bar 2 XP machines) on the network are windows 7 32 bit and redirection works fine on those?
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cescentmanAuthor Commented:
When I run  gpresult /r is shows the staff policy as being applied.
Looking event viewer I have:-

Failed to apply policy and redirect folder "Desktop" to "\\server\users\me\Desktop".
 Redirection options=0x9211.
 The following error occurred: "Can not create folder "\\server\users\me\Desktop"".
 Error details: "This security ID may not be assigned as the owner of this object.".
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cescentmanAuthor Commented:
I've changed the ownership and that's done the trick although I'm at a loss to know why the other machines work and not this one. Thanks
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