Software Installation and Fast Logon Optimization

Well these days I am playing with GPO features new in W2K8. I was trying to install a small piece of software using GPO computer configuration installation. It's pretty straight forward and I expect the software to be avaibable to computers on next reboot. Well this doesn't happen. and I got following event on XP n Win7 machine

Event Type: Warning
Event Source: Application Management
Event Category: None
Event ID: 108
Date:  9/25/2010
Time:  1:50:43 PM
User:  NT AUTHORITY\SYSTEM
Computer: CLIENT1
Description:
Failed to apply changes to software installation settings.  Software installation policy application has been delayed until the next logon because an administrator has enabled logon optimization for group policy.  The error was : The group policy framework should call the extension in the synchronous foreground policy refresh.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.


Fast Logon Optimization
By default in Windows XP Professional, the Fast Logon Optimization feature is set for both domain and workgroup members. As a result, Windows XP does not wait for the network to be fully initialized at startup and logon. Existing users are logged on using cached credentials. This results in shorter logon times. Group Policy is applied in the background after the network becomes available. Note that because this is a background refresh, extensions such as Software Installation and Folder Redirection take two logons to apply changes. Additionally, changes that are made to the user object, such as adding a roaming profile path, home directory, or user object logon script, may take up to two logons to be detected.

If you turn off this feature, logons are performed in the same way as for Windows 2000 clients, in that Windows XP waits for the network to be fully initialized before users are logged on. This results in the synchronous application of policies when the computer starts and when the user logs on. This application of policies is similar to a background refresh process and can reduce the length of time it takes for the Logon dialog box to display and the length of time it takes for the shell to be available to the user. An administrator can change the default by using the Group Policy MMC snap-in.

Fast Logon Optimization is always off during logon under the following conditions:

• When a user first logs on to a computer.
• When a user has a roaming user profile or a user object logon script. .

Note that under the preceding conditions, computer startup can still be asynchronous. However, because logon is synchronous under these conditions, logon does not exhibit optimization.

So based on this I rebooted both the machines and I got the software installed on both the machines. On Win 7 machine I also notice Interactive Session detection which requires user's interaction. Will try to find  out how can we by pass this one untill then....
Probably You may want to wait longer and run gpupdate /force than rebooting the system twice