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Unfortunately, some AD group policy (GPO) settings are not preferable.
Where does the LGP store this setting - is it even in the registry and more importantly - Is there a cleverer way of setting up SRPs?
Local Group Policies get stored outside of the registry in C:\Windows\System32\Group Policy and get merged into the registry during startup (for computer policies) or logon (for user policies).
Group Policy is a great administration tool, allowing you to fine tune exactly what you want users to be able to do and what you do not want them to do.
You can be very granular in your control of Microsoft Window and many applications.
One thing you should take note of is the Action type at the top of the screen.