Windows 7: Offline Files

I'm having an issue with one of my mobil users and offline files. When they are away and work on files designated as available offline or create new files in folders that are available offline after a reboot they are shown as place holders. Greyed with an X next to them and unavailable. No way to open/use them.

After returning to the office or dialing into the VPN the files return to available.

Environment:

Client:
Windows 7 Pro 32-bit
fully patched & updated
dual core intel
3GB ram
My Docs folder redirected to DFS Share
Home drive mapped to Z: and made available offline

Server:
W2k3 server R2
fully patched & updated
Domain DFS root hosted on a 2k3 R2 storage server edition
\\domain\dfs\user\%username%\


Let me know if there is any other relevant information I missed. Any insight is appreciated.

TIA

Mac

...

I know the microsoft documentation says offline files says it can be used with dfsr shares but I'm not finding that to work well in practice.

Maybe there is just a setting I am missing but its sure not documented anywhere.

Both users I have with vista/7 on LT's with offline files enabled on their rerdirected my documents folder are having different issues.

Disabling offline files clears up the issues for both users. But it would be really nice if I could get offline files working on both of these machines.

What am I missing here?