From a newsgroup post: "I tried to Enable the "Do not check for user Ownership of Roaming Profile Folders", but this did not solve anything. The "Folder Redirection" still did not work properly. However, I found something else that did solve the problem. In the "Folder Redirection" Policy under "My Documents" there is the option "Grant user exclusive rights to My Documents". This option was enabled and after I had disabled the option, the "Folder Redirection" policy executed without errors".
I found this issue on a Windows 2003 file server. I followed recommended permission settings in KB article ME274443
on share where the redirection policy was pointed to and it resolved the problem.
I was getting this event for specific users only. I found the cause of this to be the fact that the “My Documents” folder contained files not belonging to the user whose folder this was. By resetting the owner to be the relevant user and checking the path location to the My Documents central file location, it fully resolved the issue.
article contains information about "Folder Redirection" with direct referrences to this event id. See the link below.