I'm currently developing a Windows Build. The users are using mandatory profiles. I need to create a directory in the local area of the profile (appdata\local) when a users logs into a machine. This obviously isn't covered with the mandatory profile, how can I specify the directory and it's contents? I've tried populating the directory in the local default profile (which works with XP) but this is ignored when the new profile is built.

Such user profile architecture was involved since Windows Vista. It is different from Windows XP. Generally speaking we do not need to make the appdata\local foler a roaming folder. Also it is impossible. You may refer the following article. Managing Roaming User Data Deployment Guide Arthur Xie - MSFT