If you add global groups  to SPS and then add people to the groups, this is no
longer an issue.

I wouldn't assume that MS knows it is widespread. Did you all let MS know that
you were having the problem? I would hate for all of us to be waiting on a patch
that none of us has reported needs to be made.

I think this was documented as a bug my many people before. I will suggest
to see if flushing the dashboard cache  helps and avoid a reboot. (To flush
the cache go to Management dashboard, click on Flush application level
cache)

I have already tried to clear the application level cache  but this does not
help.

We tried that but it doesn't work unfortunately - don't know if other people
had similar problems with flushing though? We had to start/stop services  or
reboot the server. However, even start/stop services had problems so we went
for a server  reboot, advising clients that new users  should be added  in
batch out of office hours.

I have had the same issues with adding users  as Greg has outlined below...I
have been looking for a solution to no avail.
Unfortunately, the group  approach will not really work as I have multiple
dashboards/folder with different permissions  and would therefore end up
adding quite a number of NT groups....

Surely, Microsoft are working on this problem  as it does seem to be quite
widespread??

The groups  approach obviously works because the security console is not
updated when users  are added  to the groups - rather the group  is a
collection of NT accounts or users that have the same role. Thus, there
would be 3 groups; Coodinator, Author, Reader, and users would be added to a
group depending on their sharepoint  role. Katherine's point is well taken,
and is the reason we have decided to just go for batch adding/restart. We
have too many users, all with fairly dynamic roles within sharepoint.

Flushing the application level cache  does not help. Still get the same
problem. However, for now, since it does seem like a problem, creating
general local  groups (Coordinator, Authors, Readers) and then adding users
to it seems to work. Microsoft states that this problem  was corrected a
while back even before releasing the eval version  but I don't think the
problem has been fully corrected.