Just gone through the whole process again with a clean install of 10.7.3 (on Server and Clients)

…Same problems exist:

– You can import (i.e. Augment) only individual AD users
– Importing the AD group doesn’t import the users
– Adding the necessary NFSHomeDirectory etc. to the augment makes no difference, the Users:username is completely ignored

I was at Apple recently, asked the question, one engineer said “Hang on for a bit!” the other said “Augments are deprecated!”

I’m filing this under “not supported” indefinitely,