Server 2012 folder redirection setup

I have a new Windows server 2012 R2.  I have setup the AD DS on it and wanted to setup folder redirection.  At this time we only have 1 server and it will be the DC and file server.
I know it's not the best practice, but money is an issue.
I am new to server 2012 and followed this article:  http://technet.microsoft.com/en-us/library/jj649078.aspx

When I logon to Windows 7 machine I get the Event ID 502 error.  Failed to apply policy and redirect folder "Desktop" to \\servername.domain.local\users\username\Desktop.
The following error occurred: "Can not create folder
Access is denied.
It seems like it is either permissions or Group Policy not applied correctly, but as I mentioned I followed the permissions in the link above.
All help is appreciated.
lbideauxAsked:
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Cliff GaliherCommented:
That error is almost assuredly a permissions issue on the shared folder. Not a GPO issue. Double check your setup there, and if you don't see a problem, post screenshots.
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lbideauxAuthor Commented:
Attached is the permissions on the server and the Event ID error from the Windows 7 PC.
I created a new share and a new GP and so the error is a little different on the PC,  It is now saying the system cannot find the file specified.
Thanks in advance for your help.
I also noticed when I browse to the share via \\domain.local\Home$ from the Windows 7 PC, it opens the folder, but when I try to create a folder I get the following error.
Could not find this item
This is no longer located in \\domain.local.  Verify the item's location and try again.

If I try to browser via \\servername\Home$ from the Windows 7 PC, it prompts for username and password.  Again this server is the domain controller and file server.
EventIDerror.rtf
Permissions.rtf
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Cliff GaliherCommented:
Don't try to save things under \\domain.local ...it will only break. That share is a replicated share between domain controllers and the permissions are set by default for that purpose. Set the path to a file server instead. That is your current problem. I will point out that technically you could create anDFS Namespace, but even that would have a different path than your description or screenshots, so I know DFS is not in play here. And setting up DFS is significantly more complicated. So I'll not be diving into that.
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lbideauxAuthor Commented:
Thank you!  The issue was I was trying to use \\domain.local\share$
I used \\server\share$ and it worked.
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