One final thing- Because that key is set in the machines registry for loopback to take affect, the machine has to have read and apply gpo for the gpo with the loopback settings. If it doesn't have rights to the loopback gpo, loopback will NOT occur and the user portion of the gpo will NOT get processed as the user is in a diff ou. What it comes down to, is the machine has to have rights to the loopback setting gpo...
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