Windows 2008- Account Lock not working and getting Domain Policy access denied

Hi
Windows 2008 Root Domain we tried to Edit the policy and we were getting the error "Access Denied on the Domain Policy template" we resolved by giving Write permission for authenticated user on the Template. later we applied account lock out policy.
but it is not applying and automatically reset to 0 in account lockout tool.
Error:"Access Denied:\\sysvol\Domain.com\policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\Windows NT\SecEdit\GPTmpl.inf.Make sure that you have the right permission to this object.

Hi,
The error message is Access Denied, so it should be a permission issue.
You mentioned that you tested the account lockout in isolated network, it was working fine without any problem, by which did you mean that you didn’t get the Access Denied error message, or account wasn’t lockout out?
If you are facing account lockout problem, here are some troubleshooting articles below for you:
Troubleshooting Account Lockout
http://technet.microsoft.com/en-us/library/cc773155(v=WS.10).aspx
Troubleshooting account lockout the PSS way
http://blogs.technet.com/b/instan/archive/2009/09/01/troubleshooting-account-lockout-the-pss-way.aspx
Appendix Two: Gathering Information to Troubleshoot Account Lockout Issues
http://technet.microsoft.com/en-us/library/cc778156(v=WS.10).aspx
Best Regards,
Amy

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