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Is there an automated way to create a Home Directory structure for new users?
For example
-Home Directory Root Folder
--Desktop
--Documents
---Downloads
--Favourites
Can it be done with the Folder Redirection group policy in some way?
Also on the subject, since the Desktop folder is redirected if a user deletes a file and sends it to the recycle bin does it stay in their profile until they empty the recycle bin?
yeah, you can do this through GPO, user redirections - redirect what you want to specified folder and than just apply that policy to OU with users. Every time new users login for first time, those folders will be created for them. Just need to remember that you need to have proper permision on main folder where you redirect.
How are you creating your home drives, as when you do it through AD a folder and permision set are all ready created with the user taking full control over it?