Error when deleting file or folder on Windows 7 with folder redirection policy

Users receive one of the following errors when deleting a file/folder:
"You are not authorized to perform that operation. you must be authorized by the Administrator of this computer to perform any changes to this File/Folder".
"You need permission to perform this action. You require permission from the computer's administrator to make changes to this folder"

Despite the error the file/folder is actually deleted. Note that Shift-Delete (which bypasses the Recycle Bin) does not produce the error.

This is because, the Recycle Bin behaviour in Windows 7 appears to have changed in that it tries to locate the recycle bin in the same location as the deleted file/folder - which in this case is an NSS volume. In the NSS world, undelete is a function governed by Salvage settings so in this case, with redirected folders, the Recycle Bin functionality should be turned off.

It can be turned off via policy setting:- User Config/Admin Templates/Windows Components/Windows Explorer there is an option called "Do not move deleted files to Recycle Bin"
or
It can be turned off via registry setting:-
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\BitBucket
Add/modify Data Type: DWORD // Value Name: NukeOnDelete = 1