GPUpdate Will Not Apply Services Changes

I am getting the following error on my computers when trying to apply group policy settings. This is specific to changes to Services on the local computer:

User Policy update has completed successfully.
Computer policy update has completed successfully.
The following warning were encountered during computer policy processing:
Windows field to apply the Group Policy Services Settings. Group Policy services setting might have its own log file. Please click on the "More information" link.

I turned on GPP logging and I get these errors:

Failed to open file. [ hr = 0x80070003 "The system cannot find the path specified." ]
Error reading GPE XML data file. [ hr = 0x80070003 "The system cannot find the path specified." ]
Completed loading of package. [ hr = 0x80070003 "The system cannot find the path specified." ]
Completed apply GPO. [ hr = 0x80070003 "The system cannot find the path specified." ]
Leaving ProcessGroupPolicyExServices() returned 0x00000003

That is all the information I get! I have service changes on multiple GPOs and NONE of them are taking effect. Even a brand new GPO with service changes will not work. Has anyone see this before?

Environment is Windows Server 2008 R2 and Windows 7 all on the same domain.

Found the issue for this problem.Turns out the primary policy was having trouble reading from the services.xml file. I removed it and remade the services changes and it all started applying again correctly. It might have been a race condition between the changes in some of the policies and the corrupted services.xml