In Workgroup Manager, go to Inspector/Config/augmentconfiguration. Edit the XMLPlist attribute and remove the following two lines:
<key>Augmented Directory Node Name</key>
<string>/Active Directory/All Domains</string>
I’m not the original poster but this worked for me, we’re running a 10.6.8 Server with 10.5-10.7 attached workstations, all are reading their augmented records correctly at this point, thanks a bunch for the tip!