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For example, imagine I have a GPO rule that states that nobody can change their wallpaper.

In a child user group, would a GPO stating it can change take higher priority?

Sort of like CSS, more specific CSS rules take effect. Is this the case with GPO's?

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In general terms, yes. There are exceptions though.

The general rule of GPO processing is LSDOU: Local policy, Site level policy, Domain level policy, and Organization Unit policy.

Four settings can affect the application of Group Policy: Enforcement, Inheritance Blocking, Loopback processing, and GPO filtering. Here's a link to Microsoft's Group Policy home page for further study:

http://technet.microsoft.com/en-us/windowsserver/bb310732

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Thank you. :) So an OU policy takes the least precedence? That seems odd... –  Sergio Tapia Apr 2 '11 at 13:48
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No. An OU level policy takes precedence, with exceptions. Local policy is applied first, then Site level policy, then Domain level policy, and finally OU level policy. –  joeqwerty Apr 2 '11 at 14:17
    
Processing is the exact opposite of precedence, the last GPO setting applied is what is set –  Jim B Apr 2 '11 at 15:09
    
@Jim B: Right, The GPO with the lowest link order is processed last, and therefore has the highest precedence. –  joeqwerty Apr 2 '11 at 16:10

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