Windows 8 Folder Redirection/offline files not working

I am trying to deploy 4 brand new HP Laptops running windows 8 Professional into a windows 2008 domain however folder redirection is not working
These users have folder redirection enabled via group policy and this works fine under their old laptops in windows 7
For windows 8 I see an error in the event log :
Error 7023 - The offline files service terminated with the following error : the system cannot find the path specified
I also get this error if I manually try to start the offline files service.
This is happening on all 4 brand new laptops. All latest available updates installed.

I am trying to deploy 4 brand new HP Laptops running windows 8 Professional into a windows 2008 domain however folder redirection is not working
These users have folder redirection enabled via group policy and this works fine under their old laptops in windows 7
For windows 8 I see an error in the event log :
Error 7023 - The offline files service terminated with the following error : the system cannot find the path specified
I also get this error if I manually try to start the offline files service.
This is happening on all 4 brand new laptops. All latest available updates
installed.
The error as you have already observed is a critical error  blocking the service from running. So that must be about the computer software configuration.
You claim brand new, latest updates etc. - however to use i.e. folder redirection, gpo's etc. you're modifying the software configuraton. I.e. not quite brand new or unchanged (except for those may be important changes, guess those machines are indeed brand
new or just bought ... however still in change as any other software managed machines)
For some reason could be corruption of system configuration, but how? Unlike coincidence of 3 of 4 computers failing to start that services? I.e. have you done any changes to offline files etc, scripts or some stuff with gpo's.
Try exploring the Windows log and take a look at the detail for the error events.
Use process monitor from Microsoft to trace what happens when you try to start the Windows service ...
Just tips for determining the bug ...
Out-of-the-box this should not happen ... for folder redirection and offline files ... it's actually the Windows client going to get those files ... so take a look at the client and try to trace the bug.
My best guess is something is changed on the client - and your customized system or software is doing it. Or something wrong with the configuration. I.e. if you have relocated the CSC cache ...
In my experience the best way to debug this problem is to use Process Monitor ... and i.e. come up with a fix based on the observations i.e. if you have relocated the csc cache to some place where it is actually not available or incorrectly configured
(i.e. take a look at the Result column and looked for failed operations in context with CSC cache operations)
If you don't know how to do this - don't relocate the CSC cache ... (i.e. if you did this to conserve space on i.e. your SDD's with i.e. smaller capacity than legacy-HD). The real problem is the Folder Redirection Client on the Window Client going to
pin the entire folder hierarchy of the users workspace, i.e. documents. Either move files out of that area or use group policy to disable pining entire user "storage area". Microsoft should make the Folder Redirection Client more flexiable, i.e. add option
to exclude part of folder hierarchy. But you can do this by using gpo to disable folder redirection auto-cache of all files - and then instead have users explicitly pin their mobile folders. However for some folders like favorites, desktop and so on you can
actually use batch and wmic to set pin of some folders containing usually less data using a startup script and gpo. That Works ... and simulates i.e. excluding the stored data in user libraries like documents, videos, music ...
... anyway added this based on a "suspension" on what you are really trying to obtain ... but the solution is not to move the CSC cache to aqquire more space, i.e. a user can put 1 TB in their videos ... the solution is to program the Folder Redirection
Client differently ... untill Microsoft add that functionality.

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