help group policy not working windows server 2008 AD

Hello,

I have a server that will be used as a terminal server.  I want to create a gpo that will disable some features like shutdown, control panel for regular users but not the domain admins.

To do this I created an ou TS.. I created a security group TS.  I joined the server moved the server to the out made the server member of the security group.  I then created a Group policy linked it to TS ou then under the GP i went to delegation advanced add then choose domain admins and made sure apply policy is set to deny.

The problem is group policy didnt apply to any users at all.  I did RSOP.msc but it didnt show the changes I made under the group policy.  I tried gpupdate/force and also restarted the.

I am sure I am missing a steup most likely out to link the out to the security group or maybe out has to be linked directly to the server..

Please help