I have just rebuilt my test domain with Server 2012 R2 and Windows 8.1. Unfortunately now I am unable to get the redirection to work.
I have built a Windows 8 machine and the redirection works as expected but as soon as I connect an Windows 8.1 workstation it fails. In addition to the folder redirection failing, the start menu only has 5 tiles and some of the metro interface fails to work.
The workstations are within a blocked OU with only the folder redirection policy enabled.