Wow, so that was:
* [D] [Issue #20851] Very rarely, a pool part folder is reported to not exist, while a sub-folder under that folder does exist.
This causes duplication inheritance to get confused and to inherit the wrong value from the root. This issue
was reported on Windows 7 and WHS 2011. It could not be reproduced.
The problem was that a root directory on one of the pool parts (i.e. the PoolPart folder itself) didn't exist. I was never able to reproduce this, but the error message that he's seeing is consistent with the fix. That's what you would see if a PoolPart folder didn't exist, but at the same time the volume was mounted and accessible.
Hopefully this issue is limited to WHS2011 / Win 7.
If this is still a problem I can do remote support and take a look.