Cannot delete ‘file name’: Cannot find the specified file. Make sure you specify the correct path and file name Error

We are currently experiencing an issue when offline files  is enabled and either the Desktop or My Documents  is redirected to our SAN via GPO.   The redirects are  \\server\users\%USERNAME%\documents   and \\server\users\%USERNAME%\DESKTOP.  If I go to My Documents or browse to the unc patch \\server\users\%USERNAME%\documents and attempt to delete a file we get the following error: “Cannot delete ‘file name’: Cannot find the specified file. Make sure you specify the correct path and file name.” The file however, does get deleted off of the server. If we proceed to disable offline files and manually go to \\server\users\me and create files and attempt to delete them we have no issue. The issue is not replicated on Windows 7 Clients.

We also have an issue when copying from a redirected share or UNC name to a drive mapped on a regular server.   When copying from \\server\users\%USERNAME%\DESKTOP to say a mapped P drive, we get the following error:  Cannot Copy <file> Cannot find the specified path.  Make sure you specify the correct path and file name.   If we copy the file one by one this does not happen.  But if we attempt to copy an entire directory that will happen.  It does however, create the directory on the destination server.  User has full permissions to the destination file share as well.  They can manually create a folder and file.

User has Full permissions to their network folder and have been granted ownership

Specs:
Windows Storage Server 2008
Issue on Windows XP.