If I set the security settings on the overall group policy to all "Authenticated Users" and then use Item-Level Targeting to filter down to specific users I want to apply the policy to apply to, can someone tell me exactly what takes place in the group policy processing?

For instance if I am deploying printers to users via preferences and using item level targeting to target specific users, does the policy:

First apply to all users during the login/or policy processing process, (meaning all users get the printers and printer drivers),

THEN the as the policy is processed filter out (remove) printers from the user's that are not on the Item Level target list to get the printers.

OR

Is GP smart enough to know from the Item Level Targeting not to even apply the policy even though the policy itself is set to "Authenicated Users"