Wes,

I don't use ScriptLogic, but the key you set there will only set your HOME PAGE not where Favorites are located. Please review the correct registry setting to enable a folder redirection.

Folder Redirection Feature in Windows (Q232692)

The Folder Redirection Feature Does Not Function (Q274789)
Registry Settings for Folder Redirection in Windows (Q242557)

HOW TO: Dynamically Create Secure Redirected Folders By Using Folder Redirections (Q274443)

Enabling the Administrator to Have Access to Redirected Folders (Q288991)