I have two machines in the same OU. One Win7, one 2008R2. Both fully patched. The Win7 clinet rediredts the %appdata% folder per a GPO, not so on Server 2008R2.
I have tried to set this via folder rediretion and env. varriable. Both work on Win7, neither on 2008.
2008 gives an event ID 1112. Link
I have use gpupdate /force many times. I have rebooted several times. I have checked GP result and it shows the GPO applied to both boxes.
I sign into the boxes using one user, the same user every time.