To remove the left over Not Configured Folder Redirection policy you need to do as follows:
Remove the Documents and Settings folder under \\domain\sysvol\Policies\{GPO GUID}\User (This will remove the fdeploy.ini files as well)
Open AD Users and Computers. Turn on Advanced Features (View->Advanced Features). Navigate to System->Policies->{GPO GUID}. Right click on {GPO GUID}, choose Properties. In the dialog that pops up, switch to Attribute Editor. Scroll down to gPCUserExtensionNames, and double click it.
This will pop up a dialog with a long text entry box, and a bunch of GUIDs. This attribute defines the list of GP Extensions associated with this GPO in the User context. Immediately above it you'll see the related attribute gPCMachineExtensionNames which defines the associated GP extensions in the Machine context of the GPO.
Delete the following entry from gPCUserExtensionNames : [{25537BA6-77A8-11D2-9B6C-0000F8080861}{88E729D6-BDC1-11D1-BD2A-00C04FB9603F}] (including the square brackets)
Click OK, and you're done.
* These instructions are taken from: windows server 2008 - How can I erase the traces of Folder Redirection from the Default Domain Policy - Server Fault