Can someone tell me if I've done this right?

Windows 7 / Xp on server 2003 network. I've downloaded RSAT and installed it on a windows 7 laptop. I've run Group policy management from start menu and started looking at the policies to set. Is that all I do, nothing to install on the server? Will any changes I make only affect the windows 7 machines?

Also is there a way of not showing the named documents folder on the desktop for all users?

Also after making a default profile.v2 and loading it to netlogon my gpo set backgound now works with windows 7! No more black screens!