Hi there,
It may be related to some corrupt file in this user's local documents folder that is stopping the folder redirection from working. Can you delete the local profile for the user from the machine and have them log back in?
Or have the user login into a different machine as a test.
Also try enabling both "Grant the user exclusive rights to Documents" and "Also apply redirection policy to Windows 2000, Windows 200 Server, Windows XP, and Windows Server 2003 operating systems". When both are enabled, then the Synchronization Partnership is successfully created and documents are synchronized between the local profile and the home directory.
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