A Windows Vista-based or Windows Server 2008-based computer needs at least the Read permission for Group Policy Objects in Active Directory Domain Services if the computer is configured for loopback processing
This article discusses the behavior that occurs if you configure a Windows Vista-based or Windows Server 2008-based computer for loopback processing. In this case, the computer needs at least the Read permission for Group Policy Objects (GPOs) in Active Directory Domain Services (AD DS).
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB953768.

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