Hi All

For anyone having the same problem, I figured it out. Maybe this is obvious to some but it wasn't to me. Hope this helps:

1. The batch file calling the logon script needs to be in the GUID logon script directory - \winnt\sysvol\sysvol\domain\policies\GUID\scripts\logon. This is a simple batch file with: Kix32.exe logon.kix. Now I would have thought the logon.kix would go in this directory too. Not so, it goes in \winnt\sysvol\sysvol\policies\scripts
2. I also needed to enable two other setting in GPO. GPO,user config, system, logon/logoff - here enable RunLogonScriptSync and RunLogonScriptVisible.
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Thanks Rod