8194 Group Policy Files NT AUTHORITY\SYSTEM nodename The client-side extension could not remove computer policy settings for '  { }' because it failed with error code '0x8007000d The data is invalid.'
1085 Userenv NT AUTHORITY\SYSTEM nodename. The Group Policy client-side extension Group Policy Files failed to execute. Please look for any errors reported earlier by that extension.
Cause: 
Error event 8194 with error code 0x8007000d is usually caused by a corrupt file in the server’s group policy cache and/or by corruption of Group Policy\History registry hive
Solution:
Clear the Global Policy cache and delete the registry hive on the Windows 2003 server that is exhibiting the problem and get the cache/registry repopulated as per the following:
- Open Windows Explorer.
 - Save the contents of folder %ALLUSERSPROFILE%\Application Data\Microsoft\Group Policy\History to another location.
 - Delete all files and folders in the History folder.
 - Delete the following registry hives:
 - HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Group Policy\History
 - HKCU\SOFTWARE\Microsoft\Windows\CurrentVersion\Group Policy\History
 - Open Command Prompt and type gpupdate/force .