Ari Polsky - MSFT
Apologies for the silence on this issue. We found the problem and have already fixed it for the next release of WDS.
In the meantime there is a workaround. Please create the following DWORD registry value:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Search\FolderRedirection
set its value to 0
The effect of this change is that Search will no longer automatically find a redirected My Documents folder. So if you change the location of My Documents after setting this value, Search will not automatically find the new location (you can still add it manually through the Indexing control panel applet if it's not already in the search scope). If you don't use redirected My Documents (or if you use it but don't change the location after setting this value) then there is no impact.
Directions for adding the value to the registry:
Go to Start -> Run (or Windows Key + R), type regedit and click ok.
In the navigation pane on the left, navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Search.
Right-click on the Windows Search key on the left and click New -> DWORD value. Type FolderRedirection as the name of the new value. Double-click on the newly created value on the right and type 0 as its value.
Please post back here and let us know if this worked for you or not.