I have read that in order to get loopback policy to work correctly you will need to "enable loopback policy processing" in the local policy on the server and not from a gpo, is one server set this way ...

I setup group policy loopback processing on my 2008 R2 RDS server to give them restricted Start menus, icons, etc. This is mostly for a few iPads we've handed out, so RemoteApps isn't an option. I don ...