GPO not applying to child OU's



I have started to use and test Group Policy and having issues with child OU's applying the settings in GPO's applied at the Parent Level. Example
Orginial OU - IS - setup Desktop settings orginally hear to tes
Parent OU - Finance and Support - GPO applied "Desktop settings" - includes background and screensaver setting
Child OU - Accountin

I created the IS OU first to test these settings with creating the GPO on this OU. Worked fine. Created the Finance and Support OU and linked to the Desktop settings OU. The settings apply fine to the IS and Finance and Support Users but not the users under the child Accounting OU. I am checking into a possible issue with linking and how I created the GPO at first but cannot find any issues. Child OU's should inherit the settings from a Parent OU without having to link to the GPO at each level - right? At least that is what I read..

I thought about applying this Desktop settings GPO at the domain level but I do not want it to apply to domain controllers orthe administrator account. Any help would be appreciate!

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