I have changed my policy settings to
Computer Configuration\Administrative Templates\System\Logon\Always wait for the network at computer startup and logon (Enable)

&

Run startup scripts asynchronously (Enabled)

This changes the registry keys to DWORD =1 in all registry locations. I do see that XP is trying to wait for a network connection but if I login right away it doesn't run the scirpt. I have done some time tests with the policy in place and found that right around 47-48 seconds of waiting at Ctrl-Alt-Del the script pulls down fine. Anything under that time I don't get the scripts. If the user is new to this computer and a profile needs to be created the time doesn't matter and the script will always work. I think it is using a cached login and I am hoping there is a policy setting to disable that "feature".