Make windows 7 client compatible with windows 2003 server

Windows XP profiles are not compatible with Vista/W7 profiles out of the box. Microsoft has a whitepaper Managing Roaming User Data Deployment Guide which includes a section called 'Windows Vista and Windows XP Roaming User Profile Interoperability'. This document contains the details you need to get as much compatibility as possible on Vista, I believe most of the directions should be the same for Windows 7.

Windows 7 and Vista use a new format for user profiles. It's not your server being incompatible, it's Vista and Win7 being incompatible with 2000/XP profiles.

Check your roaming profile directory, and you'll notice that you'll have a .V2 folder there (thats your Win7/Vista profile).

A half-way solution to this is folder redirection of the desktop and my documents.