Can not make network user accounts

After upgrading from 10.6.8 Server to 10.8 and installing server tools, I can not make network user accounts. All of my old network user accounts migrated to the new OS and work properly, I just can not seem to make new accounts under 10.8.
Under 10.6.8 I would log into Workgroup Manager as diradmin and I could pretty easily make new users.
Under 10.8.2 I launch the server app and click on "users". The addition (+) symbol in greed out for making new users. I can make local users via System Preferences, but I can not see any way to change local users to network users via either System Preferences or the Server app.
I have logged into the server app using a local administrator account, the diradmin account, and the root account. None of the accounts allow access to create new network users (addition symbol is greed out).
Is there a trick to making network users in 10.8 that I am missing?
(as an aside, I have noticed I can log into Directory Utility as diradmin and can view the node with all my network accounts. It seems like I might be able to manually create a user account this way, but I'm not quite sure how to make the user record)

Open Directory service is started and functional for all the pre-existing network user accounts that were made under 10.6.8 and earlier. I just can not seem to create new netowork user accounts.
I followed the steps on this page and managed to make a user record that appeared as a network user in the Server app, but I still can not seem to log in under the user I made in this fashion (dscl command via terminal).
http://www.deadmarshes.com/Blog/20111105010130.html

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****Please click on Accept As Solution if a suggestion solves your problem. It helps others facing the same problem to find a solution easily****
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Can not make network user accounts

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