Can you provide more information as to what it is not doing that it should? Have you setup group policies for your users as well?
I have server 2003 and Win XP pro work stations. I've created a policy that I want to enforce on a user that will change the work station for that individual. I created a work station policy but want different user's to have different rights. When I attach the server policy it does'nt restrict the work station as it should. I must be missing something ?