ARCHIVED: In Windows XP, why don't group policies apply after the first login?

Windows XP has a feature called Fast Logon Optimization that allows you to log in before the computer has initialized all the networking components, including processing Group Policy Objects (GPOs). Some policies, including folder redirection and software installations, may take more than one login or reboot to take effect. If this feature is affecting your software installation process, you may receive a warning in the Application Event Log similar to the warning below:

Event Type: Warning
Event Source: Application Management
Event Category: None
Event ID: 108
Date: X/XX/XXXX
Time: XX:XX:XX XX
User: NT AUTHORITY\SYSTEM
Computer: XXXXXXXX
Description:

Failed to apply changes to software installation settings.  Software
installation policy application has been delayed until the next logon
because an administrator has enabled logon optimization for group
policy. The error was: The group policy framework should call the
extension in the synchronous foreground policy refresh.



For more information, see Help and Support Center at
http://go.microsoft.com/fwlink/events.asp.

You can disable this feature, which will essentially make XP function like 2000 in regard to processing GPOs at login. To disable this feature, make the following change in the computer's local policy or through a GPO. To make the change locally:

1. Click Start, then Run....
2. Type gpedit.msc and click Open.
3. The Group Policy editor will open the local policy. Double-click Computer Configuration, and double-click Administrative Templates.
4. Double-click System, then double-click Logon.
5. Double-click Always wait for the network at computer startup and logon, and in the new window, select the radio button next to Enabled.
6. Click OK, then close the Group Policy Editor.

For more information about Fast Logon Optimization, please refer to article number 305293 at the Microsoft Help and Support web site.