When viewing the settings fore GPO with Folder redirection setting, an error occurs.
If a GPO is created with other settings modified (not folder redirection). The same error does not occur.
Commonly when editing from a Windows 7 or Vista computer in GPMC or GPO Admin.
When a GPO is created by changing the majority of settings, it creates a registry.pol file is contained in the “Machine” or “User” subfolder of GPO folder on SYSVOL
When a folder redirection GPO setting is modified (in this case the document redirect). The file “fdeploy.ini” is created in a subfolder of “User\Documents & Settings“
The Folder Redirection policy settings use a new .ini file format in Windows Vista and in newer versions of Windows to support new options when you apply the settings. This technology lets you redirect more folders.
The first time that you open an existing policy, the settings may be converted to a newer format on a computer that is running Windows Vista or a newer version of Windows. This behaviour may occur if the existing policy was created by using the Local Group Policy Editor. This behaviour also occurs when the policy settings are shown in the Settings view in the GPMC.
Some of the settings use the old .ini file format which is why this issue does not occur with all the GPO settings.
Create the GPO on the Domain Controller with GPMC or on the GPO Admin server.