I finally figured out how to import my Group Policy from Active Directory format. I have a user policy package associated to a single test user. The user policy package contains a DLU policy to put the user in the "users" group and it also applies a local Group Policy containing security, machine, and user settings. I left the policy at the default to apply on user login. Unfortunately, when I log in using my test user account, the Group Policy does not get applied. If I change my DLU policy to make my test user an admin, the Group Policy properly gets applied. Is there a way to push this user policy package to users who will only have standard permissions?

I was looking at the impersonation tab under the policy schedule and noticed this in the help:

If impersonation is set to System for policies in a User Package, some policies will not function. These policies include the Novell iPrint policy, User Extensible policies, Windows Desktop Preferences policy, and Windows Group policy. We recommend that you use the default setting, Interactive User. If you want policies to use System impersonation, we suggest that you configure them in a Workstation Package.

So I assumed that I would not be able to use one of the other impersionation options because I have it associated to a user package. Any ideas? I really don't want to have to associate these policies to workstations.