Now that I have no hair left (as a result of pulling it all out), I have come across kbase doc. 107565 which explains that if you want a Group Folder to appear at login, you should use the Finder setting in WGM as opposed to the Simple Finder setting.
If you use Simple Finder, what you get is an AFP authentication dialog box. If the users type their name & password in the box as requested, the Group Folder will mount, a window will open showing the Document, Library and Public folders, but will not allow them access to any of the folders.
In the Finder setting, all works as it should, with the minor exception that the Group Folder appears in the Dock as a ?. Clicking on it, though, changes it to a folder and opens it. (I can live with that for the time being.)
Here’s the issue … I need the tight-as-a-drum lockdown that the Simple Finder provides, and I need the Group Folder to be available (through the Dock).
Does anyone have an idea on how to work around this, perhaps with a startup script or something? I have an email into the OS X Server team at Apple to see if this is a priority and if a fix is near. Unfortunately, I cannot deploy OS X in the labs until it is resolved. 😕