I created a new user policy in my Zen 7 sp1 system, with both DLU and GPO
on the Windows 2000 tab (not the consolidated one).
Associated it to a user container.

Logged in as user, looked in wmsched. I see the Group Policy being read,
but the DLU doesn't take effect - I get two login screens.

Since I see the Group Policy, I don't believe it would be a policy search
issue, do you?