SBS2011 Recreate Default Domain GPO

Hi,

I recently migrated a SBS2003 to SBS 2011 standard.

I have now noticed there is an error in the system event log. I have put the error at the end of this post. This was not there initially and I can only presume this has happened after an update. The folder it is looking for does not exist.  It looks like I need to recreate the default domain GPO. I have found this from Microsoft but not sure if this is the correct thing to do and also I'm not sure about step 7.

Any help would be greatly appreciated.

Thanks,
Col

Log Name:      System
Source:        Microsoft-Windows-GroupPolicy
Date:          03/01/2014 09:40:18
Event ID:      1058
Task Category: None
Level:         Error
Keywords:      
User:          SYSTEM
Computer:      [server].[domain].com.local
Description:
The processing of Group Policy failed. Windows attempted to read the file \\[domain].com.local\sysvol\[domain].com.local\Policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\gpt.ini from a domain controller and was not successful. Group Policy settings may not be applied until this event is resolved. This issue may be transient and could be caused by one or more of the following:
a) Name Resolution/Network Connectivity to the current domain controller.
b) File Replication Service Latency (a file created on another domain controller has not replicated to the current domain controller).
c) The Distributed File System (DFS) client has been disabled.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-GroupPolicy" Guid="{AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9}" />
    <EventID>1058</EventID>
    <Version>0</Version>
    <Level>2</Level>
    <Task>0</Task>
    <Opcode>1</Opcode>
    <Keywords>0x8000000000000000</Keywords>
    <TimeCreated SystemTime="2014-01-03T09:40:18.489594100Z" />
    <EventRecordID>67009</EventRecordID>
    <Correlation ActivityID="{C25A1011-5A50-4353-B547-9A15C04C5B2F}" />
    <Execution ProcessID="944" ThreadID="8108" />
    <Channel>System</Channel>
    <Computer>[server]1.[domain].com.local</Computer>
    <Security UserID="S-1-5-18" />
  </System>
  <EventData>
    <Data Name="SupportInfo1">4</Data>
    <Data Name="SupportInfo2">816</Data>
    <Data Name="ProcessingMode">0</Data>
    <Data Name="ProcessingTimeInMilliseconds">562</Data>
    <Data Name="ErrorCode">2</Data>
    <Data Name="ErrorDescription">The system cannot find the file specified. </Data>
    <Data Name="DCName">[server].[domain].com.local</Data>
    <Data Name="GPOCNName">CN={31B2F340-016D-11D2-945F-00C04FB984F9},CN=POLICIES,CN=SYSTEM,DC=[domain],DC=COM,DC=LOCAL</Data>
    <Data Name="FilePath">\\[domain].local\sysvol\[domain].com.local\Policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\gpt.ini</Data>
  </EventData>
</Event>