GP applies in the following order: Local policy, Site, Domain, OU (in order of OU nesting) So, if you have settings lower in the hierarchy, they overwrite ones above (unless you Block Inheritance or set the No Override options) Now, these overwrites are on a setting by setting basis, depending on what settings are applied. Therefore, you are correct, the settings just apply to the computer, unless you use loopback processing, in which case those Group Policy settings CAN apply to the users, but only when they log into the Terminal Server. Did that help make it clear as mud? :) James >>> Bill.beckett@xxxxxxxxxxxxxxxxx 10/7/2004 2:50:00 PM >>> Group Policy clarification please. If I have a default and also have a Terminal Server OU with its own group policy, do changes under the User Configuration apply if only the terminal server is under that OU? Example... OU=Terminal Server Object=Citrix Server There are no users under the Terminal Server OU. Does the GPO linked to the Terminal Server OU affect computer configuration only? ******************************************************** This Weeks Sponsor StressedPuppy.com Games Feeling stressed out? Check out our games to relieve your stress. http://www.StressedPuppy.com ******************************************************** To Unsubscribe, set digest or vacation mode or view archives use the below link. http://thethin.net/win2000list.cfm