I get a Group Policy Disk Quota failure at every system start

Question

This is very long, my apologies
I asked this question about a month ago and then had some medical problems so I'm starting over again.
Whenever I start my system I get a message on the screen that the system is trying to run Group Policy for Disk Quotas.  To my knowledge I've never set a disk quota policy and I can't find any indication that one is currently set.  I freely admit
that I could be responsible for this.  I might have done something in the early days of the system because it wasn't happening for the first month or two.
This time I did more reading and found a procedure on TechNet at:
"http://technet.microsoft.com/en-us/library/cc749336(WS.10).aspx" which led me step by step through the procedure, although I still can't make sense of the results.
So far I've verified that there are no policies set and that all the hard drives (3) have the Disk Quota bit 'disabled'.  I did this as 'Administrator'.
The results from the TechNet procedure turned out to be quite long but I'm listing it here in hope that someone in the community will be familiar with this problem and be able to use the information to figure out the problem. 
Here are the results:
From: TechNet Group Policy Testing
( "http://technet.microsoft.com/en-us/library/cc749336(WS.10).aspx" )
1 - Troubleshooting using the Group Policy operational log
      a - Determine the instance of Group Policy processing
           (Before you view the Group Policy operational log, you must first determine 
           the instance of Group Policy processing that failed.)
My ActivityID from the Group Policy operational log = C87E5BC2-FD21-4794-B678-787AB587D8D5
2 - Create a custom view, via a query, of the Group Policy instance
My resultant query:
<QueryList><Query Id="0" Path="Application"><Select Path="Microsoft-Windows-GroupPolicy/Operational">*[System/Correlation/@ActivityID='{C87E5BC2-FD21-4794-B678-787AB587D8D5}']</Select></Query></QueryList>
3 - Results of running the query from step 2 are listed below, in chronological order, including the complete 'detail' sections from each event.
event 4000
Event Description(s) = Computer startup
BEGIN DETAIL SECTION-----------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 4000 
    Version 1 
    Level 4 
    Task 0 
    Opcode 1 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.598400000Z 
    EventRecordID 22707 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  PolicyActivityId {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
  PrincipalSamName WORKGROUP\GROK$ 
  IsMachine 1 
  IsDomainJoined false 
  IsBackgroundProcessing false 
  IsAsyncProcessing false 
  IsServiceRestart false 
  ReasonForSyncProcessing 2 
END DETAIL SECTION-------------------------------------------------------------------------------
event 5320
Event Description(s) = Checking for Group Policy client extensions that are not part of the system.
Event Description(s) = Service configuration update to standalone is not required and will be skipped.
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5320 
    Version 0 
    Level 4 
    Task 0 
    Opcode 0 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22711 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  InfoDescription %%4161 
END DETAIL SECTION-------------------------------------------------------------------------------
event 5313
Event Description(s) = The following Group Policy objects were not applicable because they were filtered out : 
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5313 
    Version 0 
    Level 4 
    Task 0 
    Opcode 0 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22710 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  DescriptionString None 
  GPOInfoList  
END DETAIL SECTION-------------------------------------------------------------------------------
event 5311
Event Description(s) = The loopback policy processing mode is "No loopback mode".
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5311 
    Version 0 
    Level 4 
    Task 0 
    Opcode 0 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22708 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  PolicyProcessingMode 0 
END DETAIL SECTION-------------------------------------------------------------------------------
event 5312
Event Description(s) = List of applicable Group Policy objects: 
Event Description(s) = Local Group Policy
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5312 
    Version 0 
    Level 4 
    Task 0 
    Opcode 0 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22709 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  DescriptionString Local Group Policy  
  GPOInfoList <GPO ID="Local Group Policy"><Name>Local Group Policy</Name><Version>524296</Version><SOM>Local</SOM><FSPath>C:\Windows\System32\GroupPolicy\Machine</FSPath><Extensions>[{35378EAC-683F-11D2-A89A-00C04FBBCFA2}{D02B1F72-3407-48AE-BA88-E8213C6761F1}][{3610EDA5-77EF-11D2-8DC5-00C04FA31A66}{D02B1F72-3407-48AE-BA88-E8213C6761F1}][{F3CCC681-B74C-4060-9F26-CD84525DCA2A}{0F3F3735-573D-9804-99E4-AB2A69BA5FD4}]</Extensions></GPO> 
END DETAIL SECTION-------------------------------------------------------------------------------
event 4016
Event Description(s) = Starting Microsoft Disk Quota Extension Processing. 
Event Description(s) = List of applicable Group Policy objects: (Changes were detected.)
Event Description(s) = Local Group Policy
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 4016 
    Version 0 
    Level 4 
    Task 0 
    Opcode 1 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22714 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  CSEExtensionId {3610EDA5-77EF-11D2-8DC5-00C04FA31A66} 
  CSEExtensionName Microsoft Disk Quota 
  IsExtensionAsyncProcessing false 
  IsGPOListChanged true 
  GPOListStatusString %%4102 
  DescriptionString Local Group Policy  
  ApplicableGPOList <GPO ID="Local Group Policy"><Name>Local Group Policy</Name></GPO> 
END DETAIL SECTION-------------------------------------------------------------------------------
event 5320
Event Description(s) = Finished checking for non-system extensions.
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5320 
    Version 0 
    Level 4 
    Task 0 
    Opcode 0 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:29:33.614000000Z 
    EventRecordID 22713 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
  - Security 
   [ UserID]  S-1-5-18 
- EventData 
  InfoDescription %%4165 
END DETAIL SECTION-------------------------------------------------------------------------------
event 4016
Event Description(s) = Starting Audit Policy Configuration Extension Processing. 
Event Description(s) = List of applicable Group Policy objects: (No changes were detected.)
Event Description(s) = Local Group Policy
BEGIN DETAIL SECTION------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 4016 
    Version 0 
    Level 4 
    Task 0 
    Opcode 1 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:31:21.987200000Z 
    EventRecordID 22718 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  CSEExtensionId {F3CCC681-B74C-4060-9F26-CD84525DCA2A} 
  CSEExtensionName Audit Policy Configuration 
  IsExtensionAsyncProcessing true 
  IsGPOListChanged false 
  GPOListStatusString %%4101 
  DescriptionString Local Group Policy  
  ApplicableGPOList <GPO ID="Local Group Policy"><Name>Local Group Policy</Name></GPO> 
END DETAIL SECTION-------------------------------------------------------------------------------
event 7016
Event Description(s) = Completed Microsoft Disk Quota Extension Processing in 108374 milliseconds.
BEGIN DETAIL SECTION-------------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 7016 
    Version 0 
    Level 2 
    Task 0 
    Opcode 2 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:31:21.987200000Z 
    EventRecordID 22717 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  CSEElaspedTimeInMilliSeconds 108374 
  ErrorCode 2147942402 
  CSEExtensionName Microsoft Disk Quota 
  CSEExtensionId {3610EDA5-77EF-11D2-8DC5-00C04FA31A66} 
END DETAIL SECTION-----------------------------------------------------------------------------------------
event 5016
Event Description(s) = Completed Microsoft Disk Quota Extension Processing in 108374 milliseconds.
BEGIN DETAIL SECTION----------------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 5016 
    Version 0 
    Level 4 
    Task 0 
    Opcode 2 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:31:22.314800000Z 
    EventRecordID 22720 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  CSEElaspedTimeInMilliSeconds 312 
  ErrorCode 2147483658 
  CSEExtensionName Audit Policy Configuration 
  CSEExtensionId {F3CCC681-B74C-4060-9F26-CD84525DCA2A} 
END DETAIL SECTION-----------------------------------------------------------------------------------------
Event 8000
Event Description(s) = Completed computer boot policy processing for WORKGROUP\GROK$ in 108 seconds.
BEGIN DETAIL SECTION----------------------------------------------------------------------------------------
- System 
  - Provider 
   [ Name]  Microsoft-Windows-GroupPolicy 
   [ Guid]  {AEA1B4FA-97D1-45F2-A64C-4D69FFFD92C9} 
    EventID 8000 
    Version 1 
    Level 4 
    Task 0 
    Opcode 2 
    Keywords 0x4000000000000000 
   - TimeCreated 
   [ SystemTime]  2010-05-15T13:31:22.330400000Z 
    EventRecordID 22721 
   - Correlation 
   [ ActivityID]  {C87E5BC2-FD21-4794-B678-787AB587D8D5} 
   - Execution 
   [ ProcessID]  1280 
   [ ThreadID]  1784 
    Channel Microsoft-Windows-GroupPolicy/Operational 
    Computer GROK 
   - Security 
   [ UserID]  S-1-5-18 
 - EventData 
  PolicyElaspedTimeInSeconds 108 
  ErrorCode 0 
  PrincipalSamName WORKGROUP\GROK$ 
  IsMachine 1 
  IsConnectivityFailure false 
END DETAIL SECTION-----------------------------------------------------------------------------------------
End of results.
Thanks to all,
wegrok
Win7 Ultimate x64, 8 GB ram, AMD Phenom 9950 Quad-proc @2.6Ghz, HD = 1TB ASUS M4N72-E mobo, Video = NVIDIA GeForce 8800 GT w/ Dell 2407 Digital Monitor -------------------------------------------------------------------------------------------------------

Answer 1

Did you ever have luck tracking this down?  Im getting this error and have no clue where it is coming from.  I have not enabled gp disk quotas, but I do have a network share on a domain member server that has quotas attached to each users folder. 
I removed the quotas and still get this error when I manually perform a gpupdate.