UPDATE: See next post for updated findings. The solution mentioned in this post was later found to not solve the problem.
WTF! I just rebooted my Windows 7 install after typing the previous post and my user profile saved to the server!
When I previously installed Windows 7 and had Microsoft install the NVidia display drivers from Windows Update. I had the roaming profile issues, but there was no NVidia Display Driver Service so I couldn't disable it.
Well, I did a fresh install of Windows 7 and installed the NVidia drivers directly from the NVidia website and then disabled the NVidia Display Driver service. Three reboots later the roaming profile was still not updating on the server, so I wrote the post above. Then I rebooted again and *Magic*, the roaming profile updated on the server.
TIP: If you are having the roaming profile issue where it won't save to the server, do these things:
1. Make sure you do not download the NVidia display drivers from Windows Update, get them from NVidia.
2. Disable any and all NVidia services.
3. Reboot at least half a dozen times.
4. Check your event log for any other reasons why the roaming profile will not save to the server.