Small or not, treating all configurations the same way builds a foundation that will support them when they grow. More importantly, it preserves your sanity (and hair!) by creating consistency among your clients.
I generally avoid using GPO for login processing because it runs in a different context than the user. We pretty much use GPOs for security policy and admin tasks (installs, settings, etc) and use the User Profile to define the login script to map resources, display messages, and perform user-specific tasks (ie - perform tasks that the user is supposed to complete, like email profile setup, email sig creation, and such).
I assume your GPO references "kix32.exe logon.kix" from the netlogon folder. What happens to the user if you run a batch file instead - does the BAT file execute? Can the BAT file execute the kix script?
Do you have policies in place to run the logon synchronously? That may help to insure that the network is ready before running any scripts.
Glenn
_________________________
Actually I
am a Rocket Scientist!