sounds like you have messed up the folder redirection and those folders can not be 
found.  If the folders cant be found, windows will use the local folders on the PC.

if you have setup a roaming profile (in the users account settings) then you don't 
have to use any folder redirection.. However, there are performance issues to consider 
with this method.  

Read this article:

http://www.windowsnetworking.com/articles_tutorials/Profile-Folder-Redirection-Windows-Server-2003.html

This will give you more insight into why you would use the folder redirection policies 
at all. But, I would say your folder redirection configuration is where you need 
to look.  I have a feeling you have the folders redirected somewhere other than the 
user's remotely stored profile.

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