Folder Redirection mystery; Server 2003 and Windows 7

I've been using folder redirection for years with Server 2003 and Windows XP
clients. Today I started testing the new RTM of WIndows 7 in my domain, to
see how I'll need to modify my GPOs. Something very strange happened, and I
can't find an explanation for it.

Since I've made extensive use of Group Policy to configure my XP clients, I
thought I'd take a cautious approach to joining my first Windows 7 client to
the domain. Therefore, I made a copy of the Default Domain Policy and
edited it to enable Loopback processing mode in "Replace" mode. After I
joined the Win7 client to the domain, I immediately moved it's computer
object into its own OU, blocked inheritance, and linked my modified Default
Domain Policy GPO to it. My plan is to link my various other GPOs to this
OU one by one to test and tweak them.

Upon logging in with my own user account on the Win7 machine, I noticed that
my Documents and Desktop folders were both redirected just as they are on my
XP clients. However, the single GPO linked and being applied to this
machine does NOT contain my folder redirection settings. Those settings are
configured in another GPO to which this computer account has never been
exposed. My User account has, of course, but the fact that I enabled
loopback processing in "Replace" mode before EVER logging onto this machine
with a domain user account should have ensured that the user policies that
contain the folder redirection settings could never have been applied.

I've double-checked the Default Domain policy and all its Folder Redirection
policies are definitely not configured.

How's this happening? Any ideas??

Thanks in advance,

Bryan