So I got the environment variable part figured out.

If I run the script (which is launched via batch file) directly by mapping to the netlogon share, it works great.

If I just log the user in and expect it to run, I get an error from kixstart32.exe that it cannot find the script.

This is a 95 machine.

I have tried the script with both file extensions. (*.scr, and *.kix)

The login batch file:
login.bat

@ECHO OFF
Z:\KIX32.EXE envar.scr
(This is where I get the error)
net use h: /delete
net use h: "\\server\%username%$"
EXIT

envar.scr

? "Creating local user environment....."
SHELL "winset.exe USERNAME=@USERID"
Call envarmacro.bat
EXIT

envarmacro.bat

SHELL "winset.exe USERNAME=@USERID"
EXIT