Hi David,
That access denied error happens because the drive map preference is running under the computer’s SYSTEM account instead of the user’s. In the preference item, open the Common tab and check “Run in logged-on user’s security context.” Make sure the GPO is linked to the OU with the user accounts, not just the computers, and that the Item-Level Targeting is scoped to the right security group. Once it runs in the user context, the mapping will succeed since users already have permissions to the UNC path.
Let me know if you need further clarification.
Harry.