Group Policy not applying to newer objects

[bmcgrathPIX]

I have a W2K domain, and stupidly i rushed into the AD thing without thinking my OU structure through. I originally set up about 10 users, and set up a basic group policy applied at the domain level to redirect my docs to \\servername\redirected$\%username%\my documents\, with permissions applied exactly as the MS KB specifies. This worked great. Then, i thought i was smooth and created all kinds of OU's for different depts, and group policies for different OU's, and moved the original 10 to their respective depts. the originals continued to work, but any new user accts do not apply GPO's. I got rid of the lesser GPO's, and moved the original GPO back to the domain level, with no override set. there is no block policy inheritence anywhere, no other GPO's in the structure. I have checked permissions, and domain users have the read and apply group policy allowed.

I really dont want to redo the entire domain, and i have alot of stuff linking on this server.

any ideas before i end it all in a blaze of glory???