Question : Roaming Profiles on Windows 2008 R2 Remote Desktop Services server not working correctly

I have a windows 2003 AD and have recently installed a windows 2008 R2 RDS server.  I have set up the RDS server to use roaming profiles for all users that connect to the Windows 2008 R2 RDS server.  At first all of the users were getting logged in with temp profiles.  I fixed this issue by adding the roaming profile path into group policy instead of through ADUC.  Now when the users connect, they do create a .v2 profile in the correct roaming profile share.  However, a profile is also created under c:\users.  Is this normal or is this an issue?  It also appears that settings from the users' department based GPO's are being applied to their profiles when they login.  I have set the RDS server GPO to not inherit and yet users' customized start menus (from another GPO) are appearing on the new RDS server when they login in remotely.  I'd like to change this behavior if possible.

Answer : Roaming Profiles on Windows 2008 R2 Remote Desktop Services server not working correctly

you need to use gpo loopback processing
http://www.howtonetworking.com/security/gp4ts4.htm

Hope the link helps.
The content of this article is still valid in 2008 R2.