Offline files are ignoring group policy

I am beginning to test Vista for a planned deployment in July and have
run into an odd situation.

I've created a test GPO and am trying to enable the "Administrative
Templates/Network/Offline Files/Administratively assigned offline
files" policy and adding the appropriate UNC paths. None appear in
the sync center after doing a gpupdate and reboot, and none are made
available offline.

I have a highly managed environment using group policies on a Windows
Server 2003 R2. I've created a new OU just for the vista test lab so
no conflicting group policies can exist (except folder redirection as
outlined below.)

I've turned on folder redirection and that works great. Users folders
are automatically made available offline so the service is functioning
properly. I'm going to try disabling this GPO and see if it is
superceding the other, but in theory these two should be able to co-
exist. I'll post my results when I have them, but in the
meantime...anybody else run into this or have any suggestions?

As an update, I have created a user outside of the OU with folder
redirection and have verified that this is not the problem. It's a
clean Vista install (Vista Business Volume License) so no OEM issues
exist either.