Group Policy installation failed error %%1274

Based on your receiving event 1129, source Microsoft-Windows-GroupPolicy in your System Event Log I'm going to recommend a couple of things:

• Presumably you have other computers that this is working fine on, so I doubt it's an across-the-board problem with Ethernet switch configuration. If your switch is expecting to use spanning tree on the port where this problematic computer is connected, however, the port transitioning through the Listening and Learning states may be the culprit.

• I continue to see problematic NIC drivers, from time to time, that benefit from disabling DHCP media sense when these events are getting logged.

• I have one Customer using a non-Microsoft DHCP relay agent tickling this bug in Windows 7 to this day.

Those items would all be good places to look next.

Oh dear. It took me the whole day, but I found this Windows 7 SP1 bug: http://support.microsoft.com/kb/2459530

DHCP doesn't get an address on first request because the Windows Boot Firewall rejects the DHCP answer before the Windows Firewall has loaded and replaced it, and allows DHCP answers. In the mean time GP fails to process in that gap.

Ended up it is affecting all GP deployment on this domain (small domain).

MS, I want a refund for my time.