Operation is not supported by the directory node

Hi,

A couple of weeks ago I added a couple of users to my Mountain Lion Server (2011 mac mini server - 10.8.2). I have 25 clients running Lion (on mac mini - 2011) if that's relevant. All recent updates applied.

This week, I tried to add 2 new users and get the error "Operation is not supported by the directory node" with no other error indicators. The users apparently add but are not set up correctly because once the error goes away, I'm able to click cancel in the user add window and the user shows up but with the message "not active/valid" or something to that effect beside them. Once of the two users did actually add without that error, but when I tried to log in with that user, the client gave me the rainbow wheel and any other client was also unable to login giving the error "unable to login at this time because of a problem." I reboot the server and I can login again with the existing users, but once I try logging in with the recently added/incomplete user, the same problem occours again (rainbow wheel, existing users can't login, must reboot.) I've googled it. I've looked at logs and am glad to post the output of anything relevant if required, but I'm not sure which logs to start with.

I'm using Serverapp to create users. I'm using workgroup manager to manage preferences. I have profile manager disabled (i could never get it to do what i wanted, especially with printers.)

I will also mention that in an attempt to perform some other maintenance (restriction related) I've moved all of my Teachers to a group called "Faculty" and all my students to a group called "Students." I then added both of those groups to "Workgroup" since it has all of my general workgroup preferences (dock settings, software update, etc.) This had no effect on the login and this problem existed prior to me moving users around in groups, but just in case I figured I would add the information.

Any advice appreciated!!!