Problem solved.
Thanks for all the tips, but the bottom line was:
I'm an idiot.

The single $ was not the problem either, double $$ inside quotes was originally used, a guy I spoke to suggested I test without, I just happened to copy the script text while I was testing...

After checking more closely, it turns out that the problem was completely unrelated to Kix.

The tested home computers all had too many
local drives, thus the U: drive was already taken when I tried to map to it.

I will go and kill myself in shame now.


Anyway, thanks everyone for all the feedback!
Cheers,
Anders