1.) You just need one GPO to have the Loopback setting that is linked to the OU where the computers reside. Personally, I like to have a single standalone GPO that is named something like "Loopback - Replace Mode" or "Loopback - Merge Mode" so that what I'm doing is very obvious.
2.) I can't say that I've ever seen a performance hit and I use Loopback Replace pretty extensively.


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