The errors are on the laptops going to \\domain controller\netlogon\LOGON.bat or from their initial login into windows 7.

I also tested by logging with with a domain admin account on the actual server

LOGON.bat file contents:
net use F: /del
net use G: /del
net use Y: /del
net use X: /del
@Echo off
%0\..\Kix32.exe %0\..\EBILOGON.kix


ebilogon.kix file contents:
; EBI SYSTEM LOGIN SCRIPT

; Modified ID Notes
; ========== ==== =====
; 11/14/2006 SH Created Login Script

settitle ("EBI Consulting Login Script")
cls
Color y+/n

? "Hello @fullname."
? ""
? "The current date and time is @DATE @TIME."
? ""
? "========================"
? " Mapping Network Drives "
? "========================"
? ""



;;;;;;;;;;;;;;;;;;;;;;;; User specific shares ;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

;IF @userid = 'test'
; use P: "\\server\share"
; ? "Mapping P:"
;endif

IF @userid = 'eappelstein'
use R: "\\cinder\data"
? "Mapping R:"
endif

IF @userid = 'dhowell'
use J: "\\cinder\sir"
? "Mapping J:"
endif
IF @userid = 'aamena'
use I: "\\cinder\EHS"
? "Mapping I:"
endif
IF @userid = 'spenta'
use Q: "\\blizzard2\ArcIMS"
? "Mapping Q:"
endif
IF @userid = 'cjohnston'
use Q: "\\blizzard2\ArcIMS"
use S: "\\rjsserverma\data"
use T: "\\giswebapp\arcims"
use U: "\\viper\udrive"
use V: "\\Viper\gis_raster_temp"
use W: "\\Viper\ArcSDE"
? "Mapping Q:"
? "Mapping S:"
? "Mapping T:"
? "Mapping U:"
? "Mapping V:"
? "Mapping W:"
endif


;;;;;;;;;;;;;;; Location specific network login scripts ;;;;;;;;;;;;;;;;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

SELECT
CASE ingroup("burlington office")
use y: /DEL
use f: "\\cinder\data"
use y: "\\cinder\users"
? "Mapping F:"
? "Mapping Y:"
CASE ingroup("remote employees")
use f: "\\cinder\data"
use y: "\\cinder\users"
? "Mapping F:"
? "Mapping Y:"
CASE 1
ENDSELECT
SELECT
CASE ingroup("pa office")
use K: "\\vortex\data"
use U: "\\vortex\users"
? "Mapping K:"
? "Mapping U:"
ENDSELECT
SELECT
CASE ingroup("NJ Office")
use K: /DEL
use U: /DEL
use O: "\\rockslide\NJ-USERS"
? "Mapping O:"
CASE 1
ENDSELECT


;;;;;;;;;;;;;;;; Group specific network login scripts ;;;;;;;;;;;;;;;;;;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;


SELECT
CASE ingroup("Telecom")
use G: "\\cinder\telecom"
? "Mapping G:"
CASE 1
ENDSELECT
SELECT
CASE ingroup("S&T Group")
use T: "\\cinder\ISys"
? "Mapping T:"
CASE 1
ENDSELECT
SELECT
CASE ingroup("Human Resources")
use R: /DEL
use R: "\\Cinder\HR"
? "Mapping R:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("SIR")
use J: "\\cinder\sir"
? "Mapping J:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("A & E")
use Y: /DEL
use Y: "\\rjsserverma\Users"
? "Mapping Y:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("EHS")
use I: /DEL
use H: /DEL
use I: "\\cinder\EHS"
use H: "\\cinder\ehs\clients"
? "Mapping I:"
? "Mapping H:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("sema4 users")
use M: /DEL
use M: "\\cinder\sema4$"
? "Mapping M:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("accounting")
use H: /DEL
use M: /DEL
use H: "\\cinder\acctg"
use M: "\\cinder\sema4$"
? "Mapping H:"
? "Mapping M:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("AE-MA Data")
use S: "\\rjsserverma\data"
? "Mapping S:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("AE-NJ Data")
use K: /DEL
use U: /DEL
use N: "\\rockslide\NJ-Data"
? "Mapping N:"
CASE 1
ENDSELECT

SELECT
CASE ingroup("AE-PA Data")
use K: /DEL
use K: "\\vortex\DATA"
? "Mapping K:"
CASE 1
ENDSELECT
;;;;;;;;;;;;;;;;;;;;;; User specific shares to run at end ;;;;;;;;;;;;;;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

IF @userid = 'ideb'
use Y: /DEL
use Y: "\\cinder\users""
? "Mapping Y:"
endif



Sleep 1

at (22,1) "Login script processing complete."
exit

These results were from my windows 7 laptop.

When run in a command prompt
Microsoft Windows [Version 6.1.7601]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Users\eappelstein>\\2003 Domain Controller with issue\netlogon\kix32.exe

C:\Users\eappelstein>\\2008 Domain Controller that works\netlogon\kix32.exe
KiXtart 2010 4.53 / Copyright Ruud van Velsen 2006
Microsoft Windows (logon) script processor.

Note: KiXtart is CareWare, please consult the manual for full details
on distribution and licensing.

Usage :

KIX32 [script1] [...] [$var=123] [/f[:yyyy/mm/dd]] [/r:irel] [/u:password] [/d] [/t]

Options:
/d = enable debug mode
/f = flush token cache (optionally only if older than date specified)
/r = KXRPC search order (see manual for details)
/u = password to lock or unlock a pre-tokenized script
/t = tokenize scripts (see manual for details)


C:\Users\eappelstein>\\2003 Domain Controller that works\netlogon\kix32.exe
KiXtart 2010 4.53 / Copyright Ruud van Velsen 2006
Microsoft Windows (logon) script processor.

Note: KiXtart is CareWare, please consult the manual for full details
on distribution and licensing.

Usage :

KIX32 [script1] [...] [$var=123] [/f[:yyyy/mm/dd]] [/r:irel] [/u:password] [/d] [/t]

Options:
/d = enable debug mode
/f = flush token cache (optionally only if older than date specified)
/r = KXRPC search order (see manual for details)
/u = password to lock or unlock a pre-tokenized script
/t = tokenize scripts (see manual for details)