Windows 7: Local group policy won't apply to Built-in Guest account

I have WINDOWS 7 ULTIMATE and am running a multi-user environment. I use group policy frequently (local computer only/no domain). This is my first time enabling the Guest account. I don't understand why none of my group policy settings will apply to the built-in guest account...neither the "Computer" or "User" policies will apply to the Guest account. This is baffling! I thought the Guest account was the most limited. How can this be, when Windows doesn't apply group policy to it!

Can I just add the built-in guest account as a member of the same group(s) that standard users are members of, which I believe is just "Users" and "HomeUsers?" Would that correct the problem? Please tell me the correct way to remedy this. I don't want to mess things up or the integrity of my system, I just want my local group policy settings (both computer and user policies) to apply to the built-in Guest account.

Thanks!