Windows 7: Disable Lock Workstation After 10 Minutes Using Group Policy

Yet another option is freeware Caffeine program. It is free for commercial use as well. From the program's homepage:

If you have problems with your PC locking or going to sleep, caffeine will keep it awake. It works by simulating a key-press once every 59 seconds, so your machine thinks you're still working at the keyboard, so won't lock the screen or activate the screensaver.

Caffeine works by simulating an F15 key up event every 59 seconds. Of all the key presses available, F15 is probably the least intrusive (I've never seen a PC keyboard with that key!), and least likely to interfere with your work.

This off-the-shelf solution also allows you to control when to enable it and disable it:

Double-clicking the program icon empties the coffee pot, which is what the icon represents, and temporarily disables the program. Double-clicking it again refills the pot, and will keep your machine awake.

As it turns out there were two conflicting policies being applied to the system. My account was not affected by one of the policies so everything seemed to work fine for me, however when any other user account tried (because those accounts were being affected by the other policy) the screensaver policy was overwritten with the policy that caused what I posted as the "Actual Result".

Unfortunately that other policy is a very restrictive policy so we couldn't access gpresult or rsop to figure this out sooner. Using Group Policy Results helped us figure it out.