Not sure if this helps or not but we had something similar to this when we changed our password policy from 60 to 90 days. What happened for us (and may be an issue for you as well) was that we changed our Default Domain Policy to reflect the change. We have our Domain Controllers OU set to block inheritance and inside of that is the Default Domain Controllers Policy was never got updated from 60 to 90 days so the change never took affect. Unfortunately, GP Results never picked up the problem so troubleshooting was difficult.
We got the problem fixed but still had issues with the Win7 notification that users passwords were expiring. Users simply do not look at the notifications in the task bar, it needs to pop-up a dialog box like it did in WinXP.
My solution to the users being notified is the user of NetPassWordAge (NetPWAge.exe) to notify me when users are nearing expiration and then sending them an email. I work for a small company, I know this is not practical in a large enterprise. Here is the batch file I run to show me in notepad who is over 80 days:
NetPWAge /USERS /DOMAINdomain-name) /MIN:80 /MAX:100 /B >C:\scripts\netpwage\passwords.txt
notepad C:\scripts\netpwage\passwords.txt


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domain-name) /MIN:80 /MAX:100 /B >C:\scripts\netpwage\passwords.txt