I also think that this will fix your problem. I noticed that Windows 7 has many problems with DFS. I met more issues with DFS and any other but cant found a solution, and microsoft is not very helpfull....
- windows explorer redirects to the root directory - the hotfix will fix what i told you earlier
- windows explorer shows two network drive with the same drive letter - earlier hotfix is good for this too
- if i create a directory on a network drive (DFS) then i can't see the created directory until i refresh windows explorer - didn't found a fix yet

- shortcuts to network drives (also DFDS) on the desktop have suddenly removed - didn't found a fix, but probably this is till related with DFS
- can't start WebClient service (Acces Denied), however i am admin - this may not be a DFS problem, but if i can't start this service, and want open an office file from sharepoint, word freezes, and only reboot helps, didn't found a fix either

- if i save a .doc file on my desktop after editing it the icon will change its position. .docx file stays where i put it - didn't found a fix either
kampi