Folder redirection does not work as expected

Hi

We have a strange issue - we have Home folder in user profiles set as H: drive mapped to \\servername\Home$\%username% and mapped fine, and folder redirection set via Group Policy as "Setting: Redirect everyonce folder to the same location" and"Target folder location: Redirect to the user`s home folder.

All PCs are windows 7, domain is windows 2008 and 2012

But folder redirection creates "Documents" folder under \\servername\Home$ (rather then under \\servername\home$\username) and redirect into that folder.
Anybody had same issue?

Thanks