I have two specific issues around using AD and SharePoint Groups of
which this is the first.

I have created a SharePoint group called "Issue Tracking Users" and
the only member is an AD group called "<domain_name>\issue tracking
users". In a specific SPWeb I have granted two permission levels to
this SharePoint Group as follows;
1) No Deletion
- List Permissions; Add Items, Edit Items, View Items, Approve Items,
Open Items, View Versions, View Application Pages.
- Site Permissions; View Pages, Browse User Information, Open, Edit
Personal User Information.
- Personal Permissions; <none>.
2) Full Personalisation
- List Permissions; View Items.
- Site Permissions; View Pages, Open.
- Personal Permissions; Manage Personal Views, Add/Remove Personal
Web Parts, Update Personal Web Parts.

There is a custom list in the SPWeb that inherits permissions from
it's parent web site and users who are in the "<domain_name>\issue
tracking users" AD group are able to select "Create View" from the
view list drop down menu. As I would expect these users are only
given the "View Audience" option of "Create a Personal View". The
problem is that when the user hits OK to complete the process they
are taken to the "Error: Access Denied" page
(_layouts/AccessDenied.aspx) and the view is not created.

Any help would be greatly appreciated.