My bad, I had added a output redirect at the beginning of the script trying to debug the script and the script was writing to that file. Here are the results of the second script the output to kixdebug2.txt:

code:
=>   COPY "\\NT-PDC\FIAApps\Common\*.lnk" "C:\WTSRV\Profiles\operez\Desktop" /H
===> status: 0 (The operation completed successfully.)
=>   COPY "\\NT-PDC\FIAApps\Common\*.lnk" "C:\WTSRV\Profiles\operez\Start Menu\Programs" /H
===> status: 0 (The operation completed successfully.)
=>   COPY "\\NT-PDC\FIAApps\Accessories\*.lnk" "C:\WTSRV\Profiles\operez\Start Menu\Programs\Accessories" /H
===> status: 0 (The operation completed successfully.)
=>   COPY "\\NT-PDC\FIAApps\Common\Startup" "C:\WTSRV\Profiles\operez\Start Menu\Programs\Startup" /H
===> status: 0 (The operation completed successfully.)
Again, no files are copied at logon, but from a command prompt the icons are copied.