I have installed the publishing feature on the Fab 40 Help Desk
template and I am now trying to control visibility of the navigation.

This works under the following
1. Use audiences built in SSP
2. Use sharepoint groups where I add individual AD accounts(not AD
groups)
3. Use 1 and 1 only AD security/distribution groups

Whe this does not work
1. Add AD groups to Sharepoint Groups and target with the sharepoint
gorups
2. Use more than 1 AD group directly in the targeting for the
navigation. In this situation, I can see/search for the groups,
close the window, and hit OK to confirm the navigation changes but
when I immediately open it back up and check the groups on that link
only one is valid. SP says it cant find the second one(red
underline) or it shows the full OU information. Again, it works all
day long if I use only 1.

As you can guess, I would like to use option 1 or 2 of the ones that
do not work. I have reproduced this in multiple test environments.