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Group Policy not working after upgrade to SBS 2003

We had SBS 2000 as domain controller with Server 2000 connected. Successfully installed Microsoft Software Update Service SUS on Server2000 and pointed client workstations to SUS server (server2000) by group policy in SBS2000. The SBS2000 machine was replaced by new machine with SBS2003. We applied Group Policy but the workstations are not conforming to Group Policy. I have heard that Group Policy is much more complicated under SBS2003 and more considerations come into play. Am I missing an important step? Microsoft offers absolutely no help on this topic and I have been unable to find anything to help. I can see the Group Policy and the config settings that I stipulated, but it won't pull the client work stations into line. Any suggestions?
It is simply untrue that Group Policy is any more or less complicated under SBS2003. They are exactly equal. I would start with basic troubleshooting steps. Is the computer joined to the domain? (Are you sure?) What happens when you run GPresult on the client? When is the last time it said Group Policy is applying? What does the event log at the client say? Start there, and I'm sure you'll find it.

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