Use Policy List of Internet Explorer 7 Sites not working via GPO

Ok, so I know there are other threads on this topic, some marked as answered when they have not been answered so here we go again.

Using GPO to enforce "Use Policy List of Internet Explorer 7 sites". enter the sites where IE 7 Compatibility view should be used and apply the policy. Using RSOP the settings are applied and the sites entered into the GPO are reflected in RSOP on a workstation. However IE refuses to use the policy. I knwo the sites are not supposed to be visable in the list when looking in IE, but testing a site known to require compatibility view does not work. I have tested several ones, all are in the setting in the GPO but are not rendered in compatibility view. Furthermore, enforcing "Turn on Internet Explorer 7 Standards Mode" does work but causes issues with sites designed for IE8. Need assistance with any additional troubleshooting tools that can be used to determine what is going on here. It is obvious that others have had this issue but no where have I seen an answer to the problem. It appears people find the answer and never return to the forums to provide an update.

I have also tried manually adding a registry key to:

HKEY_CURRENT_USER\SOFTWARE\POLICIES\MICROSOFT\INTERNET EXPLORER\BROWSEREMULATION

MSCompatibilityMode DWORD Value 1

I ran across one post where this fixed the problem but had no effect in my environment. Please help!