New create desktop shortcut GPO is causing 1030 and 1058 errors on a Windows 2003 terminal server

Primary DC: Win2012. BDC: Win2008. Clients: Win7, Win8.1. Maintaining an old Win2003 terminal server to run legacy software.
Everything works fine for a look time until I added a new GPO to create a desktop shortcut on the client machines, Windows 2003 runs into Error 1030 (Cannot query list of GPO) and Error 1058 (Cannot access the file gpt.ini for GPO, The system cannot find
the path specified) GP processing aborted).
Tried changing the GPO to target Win7 and 8.1 only. Tried creating shortcut using Computer Config settings only as well as User Config settings only. Deleting the GPO and creating it from scratch. Nothing works, as soon as GPO is in place,
it disables the Win2003 from processing any other GPO.
No issue with the client machines or other Windows servers.
Thanks in advance for any help.
Roget Luo

Hi Roget,
Thanks for posting here.
Error 1030 and 1058 could be caused by many aspects.
Firstly, please run the command dcdiag on the command prompt of a DC to check if there are any error.
Secondly, make sure the DFS service is started on the domain controller, and set the Startup type to automatic.
What's more, make sure the TCP/IP Helper service is started on the domain co, set it to Automatic and started it.
For your information, please refer to the following link to get more help:
Userenv errors occur and events are logged after you apply Group Policy to computers that are running Windows Server 2003, Windows XP, or Windows 2000
http://support.microsoft.com/kb/887303/en-us
How to solve event 1058 and 1030 on Windows Server 2003 SP2 member server in a domain?
http://social.technet.microsoft.com/Forums/en-US/ceec95fb-3efa-4016-8dd5-7003909abba4/how-to-solve-event-1058-and-1030-on-windows-server-2003-sp2-member-server-in-a-domain?forum=winserverDS
Windows 2003 Server USERENV 1058 & Group Policy Errorshttp://social.technet.microsoft.com/Forums/en-US/fad9cd47-5091-481f-8bda-0e7b10b2c814/windows-2003-server-userenv-1058-group-policy-errors?forum=winservergen
Group Policy - Event ID Errors 1030 & 1058
http://social.technet.microsoft.com/Forums/en-US/6c08278d-c3e3-434a-bcda-18d411a8e9fa/group-policy-event-id-errors-1030-1058?forum=winserverGP
Hope it helps.
Best Regards,
Elaine
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