Are you sure you are logged in as administrator and not as user with admin rights? These are namely two different things. Look HERE to see how to login as administrator.
And HERE is a good start to learn about gpedit.
Eddy, yes Im positive. I logged in as Administrator and used the Admin password his company gave us for it.
Ill take a look at the site… I was going thru another one at MIcrosoft and came back here for a sec… thank you