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You have probably already tried creating a new user with a default profile? Just to test how deep the problem goes?
Okay, when a new user profile gets created from scratch, that profile gets the pointer shadow just fine, like nothing's wrong.
Clearly, there's something in the settings of this user account that's preventing the pointer shadow. And I bet it's related to the thing that prevents me from changing the menu animation effects, too.
But this user ("development\tfabris") is an administrator of this box. He also happens to be an administrator on the domain. He also happens to have used this same domain account to set up and log in to multiple win2k boxes and they all get the drop shadow.
I looked in the Group Policy Editor and could see nothing that would prevent the drop shadow. There was a setting to block out the users' ability to change the menu animation effects, but it wasn't enabled, and all of its three settings (Not Configured, Enabled, Disabled) produced no change in behavior when I tried them. The check boxes to control the menu animation effects remain grayed.
Any idea where else these features can get disabled?