Hi,
I've experienced this issue with mobile accounts both on the original Lion Server and now with my upgraded Mountain Lion server. After setting up mobile accounts and attempting to logon with these accounts on a client computer, I get thrown back to the login screen. It does accept the credentials and shows the user's desktop for a second or so but then goes directly back to the login screen. Once in a while, it will actually allow the user to remain logged on. This only occurs with network accounts.
Needless to say this kind of flaky behaviour makes the server pretty useless. Apart from the new application caching, the server is a waste of space. Any ideas what might be going wrong? I can't believe that I am the only one experiencing this kind of thing. I have tried with two out of the three client macs that I have in the home and have even rebuilt one of the clients from scratch i.e. after formatting the hard drive.
Cheers,
Melb_Bob