Event ID - 106

Event Id106
SourceFolder Redirection
DescriptionFailed to perform redirection of folder <folder>. The full source path was <source>. The full destination path was <destination>. At least one of the shares on which these paths lie is currently offline.
Event InformationVarious reasons reported which will create this problem.
1) If you disable registry editing this error may occur. 
2) have got the above error when setting the redirection for My documents to be the users home directory (a new option in Windows 2003 server). This translated on the client computer to %HOMESHARE%%HOMEPATH%. When I changed the setting in the GPO to a full path for shared folder, instead of the home directory, the redirection succeeded OK. I guess that the environment variables %HOMESHARE% or %HOMEPATH% are not available during the login stage when the redirection happens, or at least not under Windows 2000, which was the client operating system.
3) If you configured folder redirection and destination path is not available. Lack of permission on destination path."IntelliMirror Tips and Tricks" says:
"Offline Folders Tips and Tricks 
- Do not put the server share in a Distributed File System (DFS) tree 
- Using offline folders located in a Distributed File System (Dfs) tree is not supported. If you do put shares configured for offline use in a Dfs tree, unexpected behavior, such as Access Denied errors, may occur when moving from an offline to online state. 
- When specifying a Dfs path, use the fully qualified domain name of your domain instead of the shortened NetBIOS name."

The link given below may help you to resolve this issue.
Reference Links The Folder Redirection Feature Does Not Function

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