How can we hide the local drives F and G for the remote desktop users through the group policy in Windows 2003 server?

Microsoft has KB article 231289 which shows how to edit an ADM file to hide drive letters like JKLM,etc .
As the default GP options doesnt show beyond alphabet E you need to edit the ADM file which it self is a nightmare.
Lucklily there is a tool which can modify drive letter for you .
Its called GPDrivesOptions .
Dowload it from http://www.smart-x.com/products/tools/gp-hide-drive/  

Open the following sections in gpo: User Configuration, Administrative Templates, Windows Components, and Windows Explorer.

lick Hide these specified drives in My Computer.

Hiding/Preventing Access to Drives

You can use Group Policy settings to hide and restrict access to drives on the RD Session Host server. By enabling these settings you can ensure that users do not inadvertently access data stored on other drives, or delete or damage programs or other critical system files on drive C.

The following settings are located in the Group Policy Management Console under User Configuration\\Policies\\Administrative Templates\\Windows Components\\Windows Explorer:

·         Hide these specified drives in My Computer. You can remove the icons for specified drives from a user’s My Computer folder by enabling this setting and using the drop-down list to select the drives you would like to hide. However, this setting does not restrict access to these drives.

·         Prevent access to drives from My Computer. Enable this setting to prevent users from accessing the chosen combination of drives. Use this setting to lock down the RD Session Host server for users accessing it for their primary desktop.

 

 

First we should create an OU for Remote desktop users. then create a GPO which restrict access to the local drives

Excellent Answer.......
The ADM file modofication is the betterway

1. Start the Microsoft Management Console. On the Console menu, click Add/Remove Snap-in.
2. Add the Group Policy snap-in for the default domain policy. To do this, click Browse when you are prompted to select a Group Policy Object (GPO). The default GPO is Local Computer. You can also add GPOs for other domain partitions (specifically, Organizational Units).
3. Open the following sections: User Configuration, Administrative Templates, Windows Components, and Windows Explorer.
4. Click Hide these specified drives in My Computer.
5. Click to select the Hide these specified drives in My Computer check box.
6. Click the appropriate option in the drop-down box.