Currently Being ModeratedDec 28, 2011 3:16 PM (in response to jim Melo)
So I found the solution and thought I would post for others that might be having the same problem. Although I was authenticated I was not "completely" authenticated to the server. Why this changed I am not sure. I started my server after the big 10.7.2 push so no real major releases recently except the cloud. Anyway, I had to bind my laptop to the server, even though I was logging on to the server and getting the green light.
Here is how you do this. System Preferences/Users & Groups
Then Login Options (authenticate likely neccessary)
Then where it says Network Account Server click on Edit
Select server and then Open Directory Utility
Select LDAPv3 and click on the pencil icon
Select the server again and click on edit
and now login as the Directory Admin and Bind to the server. Not sure if I was "unbound" at some point or if this was added as part of some release but since doing this my problem has gone away and I am having no problems home syncing again.