After clean install of Snow Leopard server OS, restored OD archive from previous Leopard server, all users are behaving normally. But when I add new users in WGM they cannot save preferences and have other issues with Adobe Illustrator, etc.

After clean install of Snow Leopard server OS, restored OD archive from previous Leopard server, all restored network users are behaving perfectly.

But when I add new users via WGM, new users can log into their accounts, but they cannot save preferences, and have other issues such as Adobe Illustrator not allowing them to create new files, etc.

I have removed all managed preferences from all users and groups, thinking that might be the culprit, but no.

Client machines are all 10.7.5, and worked fine with previous leopard server.

The old user group under Leopard server was redirecting the users' cache folders to the local drive via managed prefs, but all managed prefs, and the group itself, have been deleted on the new server.

When I compare the permissions on new and restored users home Library folders, they seem identical.