Running NSM on Windows 2008. Policies use DFS enabled shares and standard windows shares. NSM policy was working for staff of 3000+ members for a year and over multiple NSM upgrades. Created a new policy and applied to an OU of 10,000+ students, no home folders existed. Ran "Manage" action and NSM started processing home folders. Apx 6000 of the 10000+ processed and home dir was created with rights and quota. At that point we started to see errors like the following:

Transaction 100419
10 : Verifying paths or waiting for more paths defined for the policy to be reachable
518 : No more valid paths are available for this policy.

Transaction 101225
10 : Waiting for policy paths to become accessible
225 : The specified name could not be resolved by the network client.

At that point the working Staff policy started to do the same thing. I deleted all the remaining Pending events and deleted the student policy hoping to get the previously working staff policy to work, but it still throws the errors as does any new policy I create.

Saw in a previous post "Re: Quotas on Windows DFS" Stober, NSM does not support multiple target path in DFS.

We did add another target to the DFS share for staff which applies only to staff home folders not students, but this was done weeks before and NSM was working after the target was added. I am working to delete the added target, but want to know if this should effect the Student policy and DFS share that has a single DFS target? Or any other ideas.