The StartRunNoHOMEPATH policy affects whether the user's HOME path is the current directory when you use Start.Run, but make sure you read that carefully
A customer (via the customer liaison) discovered that even though they had set the policy, they found "if the user creates a Notepad file, the file is searched in the user's HOME directory, in contradiction of policy," I asked the liaison to confirm: "The steps you describe are rather vague. Are you saying that the problem occurs when the user ...