Win XP Offline Files Not Working

[CommodoreS]

On a Win 2008 R2 Network I have configured Offline Files, which appear to be working correctly in Win 7.

However users receive the message when logging onto the network disconnected on the XP machine:
"Windows cannot locate the server copy of your roaming profile and is attempting to log you on with your local profile. Changes to the profile will not be copied to the server when you logoff. You may receive this error message because of network problems or insufficient security rights. If this problem persists, contact your network administrator."

Also Offline files (saved word DOC files) are not showing up on the users N:\ drive on XP when offline. Instead I am just seeing folders:
N:\Application Data
N:\Favorites
N:\servername\servername\users\teachers\username\A pplication Data

Also when logged on only the two folders Application Data and Favorites are showing the blue offline files icon next to them, where I think every file in the location should have this icon, considering how I have set offline files up (config shown below) and with it working correctly in Win 7.

I have AD configured as:

User Configuration
Policies\Windows Settings\Folder Redirection\Documents
Setting: Basic (Redirect everyone's folder to the same location)
Target Folder Location: Create a folder for each user under the root path
Path: \\servername\users\teachers

Options:
Grant user exclusive rights to Documents: Enabled
Move the contents of Documents to the new location: Enabled
Also apply redirection policy to Windows 2000, Windows 2000 server, Windows XP, and Windows Server 2003 operating systems: Enabled
Policy Removal Behaviour: Leave contents

Computer Config > Administrative Templates > Network > Offline Files
Administratively assigned offline files: Enabled
Specify network files and folders that are always available offline:
Files and Folders: \\servername\users\teachers\%username%

Synchronize all offline files when logging on: Enabled
Synchronize all offline files when logging off: Enabled

Is offline files for Windows XP configured differently to offline files for Windows 7, or could something else be causing offline files not to work correctly on Windows XP?

[Michael]

Make sure you don't have conflicting policies for:

Synchronize all offline files when logging on
Synchronize all offline files when logging off

This can be specified per computer and per user. Per Computer takes priority (if different).

On the Profiles$ share, set the following permissions:

Everyone - Full Control
SYSTEM - Full Control

And of course check the profile path is correct

[CommodoreS]

I dont know what setting I have changed, but today it is working correctly on XP and making all files in N:\ show as offline.

On D:\users inside advance sharing I was messing about with the Caching settings and am wondering if it could be something to do with that, although changing it back to what it was, it is still working.

I am however still getting this error when users log on to an offline XP machine:

"Windows cannot locate the server copy of your roaming profile and is attempting to log you on with your local profile. Changes to the profile will not be copied to the server when you logoff. You may receive this error message because of network problems or insufficient security rights. If this problem persists, contact your network administrator."

Is there any way to make it disappear?

[Michael]

I'm not 100% sure, but there may be another GPO which would allow you to hide this message. Have a look within Offline files in Group Policy Management.

By default XP, Vista and 7 workstations 'check in' for new GPO updates every 90 minutes. You may wish to reduce this to every 5-10 mins so your workstations pick up the new settings quicker. It doesn't impact on network performance at all as Windows intelligently will check in at random times (within 5-10 minutes).