Has anyone got NSM to manage home directories on AD via a policy which is
associated to a group?

I have created a policy, associated it to a group but for some reason the
policy does not take affect if a user is created and added to the group.
The event is seen but it looks like it ignores it.

The best practices documentation seem to suggest this is possible (scenario
2) but I have had no luck getting it to work.

Any suggestions or pointers would be appreciated.