Reference Microsoft KB article
Recreate the Group policy and the registry settings. This time while using the Registry Browser to select values inside a registry key, do not "tick" the parent KEY as well as the values inside it. The parent key is "auto selected" - when you select a value inside a Key a red tick appears automatically on the parent key folder. It is not necessary to select the parent folder as well.
Quest does not provide support for problems that arise from improper modification of the registry. The Windows registry contains information critical to your computer and applications. Make sure you back up the registry before modifying it. For more information on the Windows Registry Editor and how to back up and restore it, refer to Microsoft Article ID 256986 “Description of the Microsoft Windows registry” at Microsoft Support.