Documents folder missing after redirection path changed!

We have a Server 2008 R2 Domain Controller/File server. Documents Folder redirection was configured in group policy initially to \\domain\home$\ We had some issues with new computers folders not redirecting and changed it to the fully qualified name \\domain.local\home$\ The checkbox to copy files to the new location is checked and when users logged on their computers sat at the Welcome Screen while documents were migrated even tho they didn't really move only the path way to get there changed.

This fixed the issues we had with Folder redirection with new users but caused me to have to restore from backup other users document folders.  

This has happened at two different locations and it's starting to get scary! I have good backups going back 90 days but I would like to get to the bottom of this. Why does simply chaining the computer name to the FQDN cause files to go missing?
jasonc74Asked:
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Lionel MMSmall Business IT ConsultantCommented:
I think the problem is the "home$" stipulation--do you have a share setup where all the users are directed to? If so try that instead and if not tray creating a share and then redirect to \\servename\sharename instead of \\domain.local\home$\ I am sure you have read all you want to on the subject already but just in case here are some details on how-to http://technet.microsoft.com/en-us/library/cc732275.aspx
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jasonc74Author Commented:
I will read it again. I have used an administrative share for the Home folder for the last 15 years without any issue. The $ is in the actual share name.
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Lionel MMSmall Business IT ConsultantCommented:
That may be true by the $ share is used to hide a share and generally used for admin purposes and somewhere in Windows server 2008 or R2 and in Win7 these were removed as default shares so that is why I am suggesting that the $ share may be the issue. It would be quick and easy to test by giving it a non hidden admin share name and seeing if the problem persists.
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jasonc74Author Commented:
This is something I really don't want to test when it comes to years of peoples documents going missing. For the mean time I've changed the path back to just the server name and not the FQDN of the server, and un-checked the box to move documents to the new location in group policy.

I wasn't aware of the change with Win 7 and Server 2008 R2.

Thanks for your help!
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