did you apply the group policy objects to users or machines? also remember, no GPOs hit admin users... so even if the policies are being applied on the client machine, they wont matter if the user is a member of administrator, local or domain.
also, if you want to check if the policies are actually hitting the client, run rsop.msc (start -> run -> rsop.msc) this gives you the resultant set of policies... interface is identical to gpedit.msc... only the policies that are being applied to the machine and user are visible with their status (enabled or disabled)
do lemme know if this helped... otherwise will troubleshoot some more