I currently deploy windows group policies via user policy packages,
associated at the container level, but have started experimenting with
gp via a workstation policy package. No success so far...

When I login on my test workstation as my test user the scheduler lists
the gp policy from both the user/workstation packages and indicates both
have policies have been run (both policies are set to run on user
login). The workstation gp has been configured to apply
user/machine/security settings and "Group policy loop back" support is
enabled and in "merge" mode. The workstation gp is configured to set the
default home page in IE, which conflicts with the settings in the user
policy package. My expectation is that the gp configured in the
workstation package will be applied last and override any conflicting
settings in the user package. That's not happening... the default IE
home page continues to reflect what is set in the user package.

I'm working with XP workstations running ZEN7. Workstation
import/inventory is active and the workstation has a registered
workstation object in the tree. Necessary "read" permissions have been
granted server-side for where the user/workstation gp files are stored.