Ok, after receiving help from Dell (Quest) suppor,t the issue happen to be with me remoting (via RDP) to VM directly instead of through the vWorkspace broker, therefore the profile could not be created because I did not have the valid farm session so it never created the profile. Once I've tested it by using the vWorkspace Connector it worked. 
Hi, I'm working on configuring the user profile management service with virtual desktops (Win 7 VDI) by following the vworkspace 7.6  admin guide and any other docs I've found on quest.com and I'm having trouble with it, there is nothing in the metaprofiles\global folder. It does not seem to be working. I have a File Server ( vdi-storage1 ) with share c:\vdiuserprofiles\  folder created where the profiles are going to be stored. I've also installed the vWorkspace User Profile Management role on this File server and the service is running. Port 5206 is open. All the virtual desktops have pntools installed with all options and I can see the user profile agent is running. I can reach storage server (vdi-storage1) using telnet on port 5206 and ping. I even gave domain user full ntfs permissions to c:\vdiuserprofiles folder, but I dont think this is necessary.  - In the Managment Console > Resources > User Profiles (Right click "Properties")       - General : Compression:low, Log Level:Detailed, Refresh: 5 minutes      - Storage Servers: Server name: vdi-storage1, Base Folder: c:\vdiuserprofiles\metaprofiles, Global Folder: Global, TCP Port: 5206      - Silos: Name: VirtualDesktopSilo, User Profile Storage Server: vdi-storage1           -  VirtualDesktopSilo Properties                - Members: Name: Windows 7 Desktops, Type: Computer Group                - User Profile Storage Server: vdi-storage1                - Auto-Save: 30 minutes  The MC did create the metaprofiles\global folder automatically when I applied the settings. I'm using default registry keys that came with vworkspace, and I've assigned all of them to domain users group. I've logged on and off multiple times on the virtual desktop. I did notice 5 second delay on the vm after I type in credentials and before it actually logs me in since I've enabled the profile managment. Did I forget something or misconfigured it?
Quest Desktop Virtualization (vWorkspace) User Profile Management trouble