Local Profile Getting Deleted

We have the "Delete cached copies of roaming profiles" group policy enabled
and we need to keep it enabled. We haven't had any problems with this setting
in XP. Vista however seems to be deleting not only AppData/Roaming but
everything else under AppData. There are several settings that are getting
deleted that should not be. For example: custom file associations, Office
Groove profile, some Outlook settings, Windows Sidebar gadgets and settings.
Any ideas?