This works for us:
Start menu folders share on server - start menu/programs/folders and shortcuts.
GPO - Startmenu redirected to above location (we have different menus for Xp and 7 32 bit or 64 bit)
Grant user exclusive rights to Start Menu Disabled
Move the contents of Start Menu to the new location Disabled
Also apply redirection policy to Windows 2000, Windows 2000 server, Windows XP, and Windows Server 2003 operating systems Enabled
(admin templates/startmenu and taskbar)
Remove Default Programs link from the Start menu. Enabled
Remove common program groups from Start Menu Enabled
Hope this helps