We have been using SharePoint since beta and still experience similar
issues. Now we are still in mixed mode, so I don't know if that has
anything to do with it. I have seen lots of funky issues here as
well. When I search AD through SharePoint for a security group to
assign I see two instances of the group, one selection will work, the
other will not. If anyone has any ideas or resolutions, I would love
to know as well!