Vista - Folder Redirection Error

My Setup:

Windows Server 2003R2 File Server
Active Directory Domain

I have a policy set up to redirect the user's my documents to their 'home
folder'

On the user's account properties their home folder is set to 'connect u to'
\\usd\homedirs\staff\hs\%username%' for example. So I have my user
s home folder pointing to the home folders share via dfs. The folder was
created by AD

This works perfect with windows xp my users documents are redirected no
problem.

In windows vista this is not the case. The documents are not being
redirected, in sync center there is an error

staff (\\usd\homedirs) - Access is denied.

Why would this be happening? What is different about the way vista does
folder redirection that could cause it to work in xp but not vista and
appear to be a permission issue?