Hi,
In general, the way it's worked since Office 97 is that "My Documents" will
be the default for all office apps even if it's been redirected to a network
drive. Check your UserShellFolders in the registry.
You can over-ride the default in a number of ways, but it can get messy.
There's a policy
Users\Administrative Templates\Desktop
Prohibit User from changing the "My Documents" path
For Office 2003, it's worth looking at the Office Resource Kit. When you
install it, it will place ADM files for office into %WinDir%\inf of the
Admin machine. You must then update them to the "SP1" versions right away.
Once you've done that, you can add the ADM files into Administrative
Templates of your policy and use them. The ORK comes with nice spreadsheets
explaining all the policies and options. On my own network, I keep "Office"
GPOs separate to "Windows" GPOs so I don't have a mess when they change the
Office version.