Have a W2K group policy for the students group setting NAL as the shell.
Works OK.

To allow them access to their home directory files on H:, I created a
simple zen app that basically runs C:/WINNT/EXPLORER.EXE /e,/root,"H:\"

When student clicks it in NAL, the desktop appears behind the NAL
window, a popup message appears that says cannot find the file
/e,/root,"H;\", and another pop up saying the action is not allowed due
to restrictions.

But, clicking it a second time everything works as expected (get
explorer view of H: as the root)!

Any idea how to get it to work correctly on the first click?