If you are using XP machines there are 2 updates you need for preferences to work.
the group policy preferences can be pushed out through WSUS, but the XML Lite one isn't listed (you can add it through coding, but not the normal way, or manually or script the install)
The workaround is to be on XP SP3, as the XML is included.
What I did to test if it was applying was to just create a desktop icon.


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