I've configured our Windows 7 clients to have "Shut Down" replaced with "Log Off" as the default button on the Start Menu in the labs on our campus using Loopback and
User Configuration\Administrative Templates\Start Menu and Taskbar\Change Start Menu power button
The problem is that if there are Windows Updates pending, this changes back to Shutdown and I don't see a way to alter this behavior. I would like it to always be "Log Off" regardless of whether or not updates are pending.
AD is at a 2008R2 DFL and FFL and third party templates aren't an option, but additional Microsoft templates not included by default are fine.