Hi @GTO455,
OK, so that explains why you're getting the "Policy prevents access to registry editing tools -- please disable this policy" error messages if that ADMX-based setting is configured.
If your users don't get the error even if the ADMX-based setting is configured, I assume their logs show that regedit.exe is being used instead of reg.exe?
Also, I guess you're an admin and your users aren't? That would affect the UAC-related impact on DEM, which causes it to decide whether to user regedit.exe or reg.exe.
Would it be an option to put a condition on that ADMX-based setting to make it only apply to (non-admin) users?