Thanks for the reply. The policies I defined in the custom security template 
were Password Policies, Account Lockout policies, a couple User Rights 
Assignments (disabled the guest account, prompt for pw change). I also made a 
change in the GPO - User Configuration (Control Panel, Screensaver) which will 
lock the screen after 20 minutes of inactivity.
I added the three users to the policy. When I look at their security rights 
under the Delegation tab, all three have "read" and "apply group policy" 
rights. 
Would I be able to find this patch the Windows website?
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