DFS asks users for name and password, redirected folders v slow

I am having real problems with redirected folders using DFS and win 6 (2008
server TS) and win 7 (workstation) clients.

In the folder redirection for my docs and desktop I have used the FQDN as
the later clients seem to demand it: XP and 2003 seemed happy with
"domain\dfs\share", win 6 & 7 clients seem to prefer
"domain.local\dfs\share".

The problem is that the clients take up to 10 mins to open my docs, and on
occasion ask for a username and password for "domain.local\dfs". If I just
use the \\server\share" in the redirection there are no probs

This is not just an issue for the redirected
folders: it seems to affect any DFS share, but of course given the
importance of the shell folders the impact on end users is more noticeable
on the redirected folders, particularly e,g, with MS Office 2007 apps.

In a GP I have added the domain to the trusted zone section in internet
explorer, internet control panel, site to zone assignment list. I have
entered "domain.local" to zone 2. Should I have entered "\\domain.local" instead?

At the moment I am not replicating, and the network has a mixture of 2003R1 and 2008R1 servers.

Regards

Roga