I've seen complaints and issues all over about the Folder Redirection GPO causing Home Folders to be renamed to "My Documents" as we have experienced the same issue.
The thing that is very odd is that we don't have the GPO turned on or even configured for this to be happening ..
Luckily, its only with a handful of folders, not all of them (seems random).. I've found that going into the folder and deleting the desktop.ini file fixes this temporarily, but it's likely to come back.
How is this happening to us when the GPO is not configured??? I'm concerned because we have 3000+ user folders that can be affected by this..
Clients are Windows 7, file server and DC is Server 2008.