To answer my own question…

What was taking so long for the XP machines to logoff was, the XP machines writing their profile to the server even though I had specifically not given them a home dir… I am under the impression that if you don’t set the home dir in workgroup manager then there shouldn’t be any profile replication with the server, I might be wrong though.

To fix this I had to log onto each PC workstation as admin and run pgedit.msc, then go to

Local Computer Policy > Computer Configuration > Admistrative Templates > System > User Profiles

And disable “Do not check for user ownership of Roaming Profile Folders”

This cleared up the problem, logoff’s are instant now!

If some one thinks there is a better way of doing this or sees a glaring mistake or problem, let me know, I’m always interested in other peoples suggestions.