Security policies were propagated with warning. 0x4b8 : An extended error has occurred.
For best results in resolving this event, log on with a non-administrative account and search http://support.microsoft.com for "Troubleshooting Event 1202's".
I got this error on a Windows XP Workstation periodically, and a 1085 error from the source UserEnv was logged right after.
I was able to resolve this problem by doing the following:
1. Renamed all files in the %SYSTEMROOT%\Security\Database folder to .bak (e.g. secedit.sdb -> secedit.sdb.bak). It seems as if renaming secedit.sdb is enough.
2. Ran a "gpupdate /force"
3. Rebooted the machine
So far, the messages seem to be gone. It appears as if the secedit.sdb file was very old and wasn't being updated anymore.