10.6 server and clients: can not login via network

I am running OD on a 10.6.8 Xserve and 10.6.8 on client macs on the same LAN, same subnet, etc. A user can login locally to a client machine and then mount their home folder via AFP just fine. But, net login does not work. I have done the following:

sudo changeip -checkhostname = no issues, server.domain.org same for all
exported OD users and groups
dumped OD to local
sudo scutil –set server.domain.org
restart
re-set OD by set to master and import users/groups and set a few new users
reset passwords for old users
try remote (LAN) login via afp to user folder, OK. Same for new users.
bind remote (LAN) computer to OD, get greendot (No SSL required).
Login window: login as user in OD using short name, see short name changed to long name, same generic error:
You are unable to log in to the user (name) at this time. Logging in to the account failed because an error occurred.
Login to server locally using OD user as sated above and all works fine.
On client machine: connect to server:
afp://server.domain.org
get info, check path is same as in workgroup manager. OK

So, not sure where to go with this. Any ideas? Time for a very expensive phone call to Apple?

Thanks!
Gil Anspacher, Technology Coordinator
Virgin Islands Montessori School & International Academy