An easier way to do this that we found was to run the following commands on each system BEFORE the first user logon:
attrib +H "C:\Users\Default\Desktop"
attrib +H "C:\Users\Default\Documents"
attrib +H "C:\Users\Default\Downloads"
attrib +H "C:\Users\Default\Favorites"
attrib +H "C:\Users\Default\Links"
attrib +H "C:\Users\Default\Music"
attrib +H "C:\Users\Default\Pictures"
attrib +H "C:\Users\Default\Saved Games"
attrib +H "C:\Users\Default\Videos"
This hides all of the relevant folders in the Default User profile before they are copied over into each new profile. If the folders are redirected by Windows, they will remain hidden - if they are not, it appears that Windows removes the Hidden attribute itself as part of the profile setup - so this is the perfect solution whether you are using Folder Redirection on all folders or not.
It seems to work fine on our system - shame that Microsoft don't recommend this as it is much easier than all the other solutions we've found such as deleting the folders or enabling 'Move the contents' as in KB2533930.