We're also seeing this. It appears to be that Apple has changed the way the domain is displayed. However, I'm finding that while I get the "green light" in the Accounts pane, I get a "red light" at the loginwindow, though no changes have been made. If I log in with a local account, I can drop to Terminal and run a 'kinit <AD username>' and enter the AD password and a ticket is generated. The domain FQDN is displayed properly during the kinit process. So, I know the authentication itself works. I think it's something else that's broken.
We've got Apple Professional Services coming in specifically to look at our AD environment and get 10.6 and 10.7 working properly. In my view, it's a litmus test. We're paying them (they're not cheap either) to make sure it work. They're either going to show me something I didn't know or was doing wrong (fine with me) or confirm that it's broken and need to fix it.
j
---
Jared F. Nichols
Desktop Engineer, Client Services
Information Services Department
MIT Lincoln Laboratory
244 Wood Street
Lexington, Massachusetts 02420
781.981.5436
