Site to Zone Assignment GPO not working on TS 2008 r2

I have a 2003 domain controller with an updated inetres.adm file loaded into group policy.

I have a user policy that assigns various webpages as intranet or trusted site's.  The policy works on a server 2008 r2 box, but does not work on the server 2008 r2 terminal server farm.  All servers have IE10.  It does work for two domain accounts but it does not work for any regular users, or users that have been added as a domain admin since this problem started.  For the users that it does not work for it shows the 'You can add and remove websites from this zone' greyed out and does not display the sites specified by the policy.  The terminal servers are set now with merge loopback, but it doesn't seem to make a difference if that's changed.

Any advice will be appreciated.

Thank you
hffjlevineAsked:
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MaheshArchitectCommented:
You have installed inetres.adm for windows 2003 from below link, right?
http://www.microsoft.com/en-us/download/details.aspx?id=37009

Somehow, It might be due to IE 10, terminal server won't understand IE settings under "Internet Explorer maintenance" wizard settings in users GPO
http://www.grouppolicy.biz/tag/internet-explorer-10/

Try below through GPO preferences as alternative to 2003 server GPO
http://www.grouppolicy.biz/2012/07/how-to-configuring-ie-site-zone-mapping-using-group-policy-without-locking-out-the-user/
Also you may add all trusted sites to Internet explorer compatibility view to avoid compatibility issues with IE10 if any.
OR

If you could please try degrading IE 10 to IE9 on terminal server and check if it works

Mahesh
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hffjlevineAuthor Commented:
I have downgraded to IE 9 and that works for now.  Thank you
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