Ok, here goes:
We have group policies that define software that should
auto-install to our systems, it works great. The GPO
defines that the software lives on a server via dfds. So
we have systems looking to install software from
\\domain\dfsroot\dfs\blah\blah. \\domain\dfsroot is the
dfs root for our domain. \\domain\dfsroot\dfs is a dfs
link to a share on our main file server, \\server\dfs.
Now, after our clients received the latest updates, they
lost the ability to install software via dfs. The clients
complain, via application event log, that the source for
the software cannot be found. That is the only error.
This previously worked with XP-SP1, and it still works with
Win2k.
Now, if we modify the GPO to point to
\\server\dfs\blah\blah instead of
\\domain\dfsroot\dfs\blah\blah the XP clients work. This
means that the problem is with the client, not our servers.

Can anybody out there verify that this problem exists in
their domain also? Just install the latest updates to XP
on a box and deploy software to it via GP, using a dfs link
for the locations of the software.

I have been searching newsgroups and the web for days, and
I finally try MS newsgroups, which I hope are any good.