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Are you running Active Directory in a domain? If so, you should move your people there into different OUs and then set GPOs from there.
I would suggest that you open your MMC, and add the snap-in Group Policy Management (from microsoft.com) and go from there. It will show your Forest(s), then Domain(s)/Site(s), Group Policy Modeling and Group Policy Results.
Are you following me here or do I need to explain further.
Please note that my network is running AD on a couple of domain controllers using Windows 2003 SE, not SBS.
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"You hear the one about the fella who died, went to the pearly gates? St. Peter let him in. Sees a guy in a suit making a closing argument. Says, "Who's that?" St. Peter says, "Oh, that's God. Thinks he's Denny Crane."
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