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I don't know of any specific problems but I did find some information on that Microsoft support database that might be relevant:
Distributed File System (DFS) Home Directory Prevents Other DFS Connections (Q172330) - this error is regarding home directories with leafs on the same server. Only SMB (CIFS) semantics are supported and not DFS. This may be a problem for what you're trying to do.
In addition, I'm not sure that there isn't a conflict with Active Directory in this area. Since I haven't done this and don't know anyone who has, I recommend that you send an e-mail to Microsoft support (go through their Web site) and specifically ask them if there are any issues.
Randy Kerns
Evaluator Group, Inc.
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This was first published in March 2002
Storage Management Strategies for the CIO

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