Windows Update Policy does not apply unless admin logs on

Archived from groups: microsoft.public.win2000.group_policy (More info?)

I have my domain WU policy setup as follows:

Config Auto Updates - Enabled
Configure Auto Updates = 4 - Auto download and Schedule
Shedule Install Day = 0 - Every Day
Schedule Time = 1:00 AM

Specify intranet server = Enabled
Set the Intranet Update Server = http://myserver
Set the intranet statistics server = http://myserver

Reschedule Automatic Updates = Enabled
Wait = 5 Minutes

No Auto Restart = Disabled (I want them to restart)

When I logon as a Power User or User I can see that in the \Program
Files\Windows Update\ folder that the updates have downloaded, but they did
not automatically install and reboot. I have rebooted the machine several
times and logged in as the power users, but the updates never applied.

Right after I log on as and Administrator I immediately get told that
updates have downloaded and are ready to install. I can then install the
updates.

Another thing I noticed is that before logging on as Administrator I could
see the Windows Update settings in control panel were still at the default
of "Download and notify". Once I logon ad Administrator they changed to
above:

My group policies must be working for the machine becasue I have several
managed software packages that installed just fine as does a few other
configurations like clear last logged on user name and things like that.