Need Help With Group Policy Access Denied (security filter) Error

[mitchellmj]

I am fairly new to Group Policies and having a hard time with applying a GPO to a specific group or computer! We have a Windows 2000 server and I have setup a new GPO to allow certain PC's to Configure Automatic Updates under
-Computer Configuration
--Administrative Templates
---Windows Components
----Windows Updates
configure automatic updates
enabled
4- auto download..................
apply - okay

I created OU in AD to add specific computers and linked GPO to this OU then ran GPUPDATE on PC and it did not take the GPO - ran Group Policy Results and the GPO I created showed under Denied with reason Access Denied (security filter)

I then created a group in AD and added a specific user and under the Security filter of GPO added group with Read and Apply Group Policy permissions - I also removed Apply Group Policy from the Authenticated Users group. Ran GPUPDATE and Group Policy Results and it also was Denied with reason Access Denied (security filter).

I can not figure out what I am doing wrong or even if I completely understand how to apply to specific users/computers!

I have (2) GPO's applied at the domain level that are working fine.

Any help would be appreciated.

Jodie