This problem happens when Windows XP is upgraded to SP3. Newly created users sometimes have a problem where their "My Documents" folder is not properly redirected to \\Esther\users$\%username%; instead it's directed to \\Esther\users$\testuser.

The solution is to revert the file fdeploy.dll back to the SP2 version. This file is in Y:\software\Windows XP\SP2 files. Copy it to C:\Windows\system32 and then logout and back in and the folder redirection issue should go away.

Background

See http://social.technet.microsoft.com/Forums/en-US/winserverGP/thread/c380a7a7-1ef3-4a09-86a0-a1acf0d5fc5f/

I used following solution and i solved my problem, hope that you will find it helpful as well.

*FIX FOUND*

After spending countless hours on the phone with Microsoft. I believe I have come up with a couple different fixes/work-a-rounds.

1. Replace %system32%\fdeploy.dll with the one found in SP2. This will solve all folder redirection issues pertaining to this post.

or

2. Make sure the users' profiles' folder structure has a "Desktop", "My Documents", and any other folder that you use redirection with. The fdeploy.dll that comes with SP3 handles folder redirection differently and will error out if the profile does not have those folders.

if you want to see the whole thread then use following link : http://www.msfn.org/board/Folder-Redirection-Broken-in-SP3-t117070.html