I am having the exact same problem on a new install of OS X Server.
I have just set up a new server along with 12 intel iMacs all running 10.4. When I bind the clients to the OD master they get added to the computer list, but then the client is unable to communicate with the OD master any longer. When I add the LDAP info but don’t bind the machine – low and behold it will communicate with the OD master once again.
I have double checked and the clients and server both have clear text passwords disabled. I have even tried it with both clients and server with clear text passwords enabled, still no go. I am at a total loss.
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