HELP !! To Glenn, I decided to see if I could get it to work myself as I wanted a setup that didn't require anything to be installed on the server and running as a service. I am happy to say that I managed to get 99% of the way there.
What I have done is the following:

I have created a batch file and put this in the netlogon folder on the server
 Code:
PATH \\%userdnsdomain%\netlogon\policies

\\%userdnsdomain%\netlogon\policies\kix32.exe policies.kix


As you can see it simply calls the policies.kix script running it with kix32.exe

I then copied the bat file from the netlogon directory to every computer in the domain using this code in my startup script:

 Code:
;===============================================================
;Copies the Policy Scripts to the local computer so that can run
;===============================================================

Filexist("\\" + $MyDomain + "\netlogon\policies\", "c:\profiles\policies\", "policy.bat", "Kixtart executable")

I then created a task in windows 7 which called the bat file locally and configured it to run as one of the domain admin accounts. It doesn't work with system because system cannot access network resources. I told the task to run whenever a user logs on - yes, I know not the most elegant solution but I discovered that standard users are unable to run tasks.

I exported the dear little task onto the server in the netlogon folder and in my startup script I created a code to copy the task to each computer in the domain

 Code:
;============================================================================================================================================
; This requires Admin Priviliges Copies the Task for the Policy Task so that standard users can run the Policy Script
;============================================================================================================================================

if exist ("%windir%\system32\tasks\microsoft\windows\policies\Policy") = 0
? "Setting Policies "
$ShellCMD = "schtasks.exe /create /RU SYSTEM /TN \Microsoft\Windows\Policies\RMDPolicy /XML " + "\\" + $MyDomain + "\netlogon\patches\Policy.xml"
Shell $ShellCMD
Else
? "Policies already scheduled "
Endif


NOW:

If I login as the domain admin account that the scheduled task runs as, everything works beautifully, however even if I login as another domain admin account, the script is not being applied - the reason being - the script is running in the user context of the scheduled task not the logged on user which means its not saving to the hkey_current_users area.

I have searched on the Internet to find out exactly how one uses the @userid variable to update the correct HKCU area. I admit defeat on this point. I cannot work out how to make the script write to the HKCU area of the logged on user and not the user context of the scheduled task user!

I am quite happy to have a look at your program Glenn - more to review it for you as I found everyone on this forum quite helpful, but I feel for my needs, the program would be overkill as I only want to modify about 8 policy subkeys in the HKCU area for standard users.

When I have time to review your program, I will let you know. It's probably going to be around November when I will have time to have a look at it.

In the meantime, if anyone can tell me how to make the script write to the correct Hkey_current_user location, I would be very grateful. The script works perfectly writing to Hkey_Local_machine, just not the current user.

And there you go, you have the procedure to enable your scripts to run admin settings under a standard user account. Providing we can work out how to write to logged on current user keys!
Cheers Rob