Can't install software via GP on XP SP3 Machines (Win 7 works fine)

[caseye]

Hello,

I created a GPO to do the following things:

Install a piece of software on target machines (computer policy)
Set up a scheduled task, to be run at system startup, to run the installed software (computer policy)
Configure Windows firewall to allow the piece of software to run (computer policy)

These policies are all under \MyOU\Test. The computers are in this OU as well. There are other GPOs, such as folder redirection, that are applying to the \Test\ OU because they are being inherited from MyOU.

This GPO applies without any problems whatsoever on Windows 7 Machines, but on my Windows XP machines it refuses to install. I was able to install it manually, but it still refuses to reinstall via GP.

The errors I am getting in my event log appear to be related to a NTFS or Sharing permissions error, but I am pretty sure I have set these correctly. I have granted read access to: Authenticated Users; Domain Computers; and Everyone. I'm pretty sure everyone should be enough, but when it wasn't working I added the other two hoping it would resolve the issue.

Event ID: 105
The reinstall of application [My application] from policy [my GPO] failed. The error was: The installation source for this product is not available. Verify that the source exists and that you can access it.

Right after this error is another one that says:
Event ID: 108
Failed to apply changes to software installation settings. Software changes could not be applied. A previous log entry with details should exist. The error was: The installation source for this product is not available. Verify that the source exists and that you can access it.

The one more:
Event ID: 1085
The Group Policy client-side extension Software Installation failed to execute. Please look for any errors reported earlier by that extension.

This is a fresh install of XP SP3 on a VM, so I don't believe its any settings misconfigured on the client Machine.

I am also having problems getting folder redirection to work because: Event 101; The following error occurred: The system cannot find the path specified.

Again, I'm pretty sure I have my shares configured correctly, but perhaps I'm missing something? Any ideas?

[trekker]

How is networking configured in your VM? Is it bridged or NAT? If it is NAT, you may need to use a fully qualified domain name (FQDN) for your server: servername.ad.yourcompanydomain.com.

For your permissions, you set them on both the share and the filesystem?