Windows Server 2008 SBS and Office 2007

Hello, the problem I am having is having Safe Senders and Safe Recipients imported into Outlook 2007 SP2 from group policy. It simply won't append the list. The environment is the following:
Clients: Windows XP Professional with SP3 installed. MS Office 2007 with SP2 installed.
Server: Windows 2008 SBS with SP2 installed.
What I have setup and tried:
1. Installed the ADMX files correctly on the server and created a GPO with the Outlook settings I need:
- Specify path to Safe Senders and Recipients files. Location: \\SERVER\netlogon\SafeSenders.txt
2. Attached the GPO to the correct OU (users are in the OU).
3. Installed the client side extensions from this link: http://www.microsoft.com/en-us/download/details.aspx?id=3628 on the Windows XP machines.
Even after setting this up the lists still will not import into Outlook 2007. What I have tried and other notes:
- Clients have access to the \\SERVER\netlogon share area. Verified through Windows Explorer.
- Tried forcing group policy update using gpupdate /force No results.
- Tried logoff and reboot combinations on client machines and still no results.
- gpresult returns the GPO is applied (but clearly it's not working).
New to setting this up to Windows XP clients, works on Windows 7 clients flawlessly. Ideas? Solutions? Thanks.
Rob Holmes

Hi Rob Holms,
Based on Donpick's suggestion, if the issue still exists, you can try to enable GPSV debug logging on one client with the problematic clent. This log records the detailed information about the group policy applying process which is very useful for troubleshooting
the group policy related issues. To enable this debug logging, please perform the following steps:
1). In the Regedit Editor, expand HKLM\Software\Microsoft\Window NT\CurrentVersion.
2). Under the folder, create a new key called “Diagnostics”.
3). Under the key, create a DWORD value “GPSvcDebugLevel” and set the value as
0x30002.
After making this change, run gpupdate /force to reproduce the issue. After that, check %SystemRoot%\Debug\UserMode\ folder and analyze the log to get more help.
Regards,
Lany Zhang

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