I'm fairly sure you need to include a variable for %username% in the path you specify in order to get subfolders, and of course it will need to be a UNC, not using any kind of mapped drive since the profile is connected before any logon script runs.
For existing users you could also use the tsprof command to set this in the first place. See here for more info on that:
http://www.microsoft.com/technet/prodtechnol/windowsserver2003/library/ServerHelp/a434912b-ea3e-4ef7-9aee-ac2fd1059820.mspx


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