Hi Edgewaters,
Apparently the AD administrator has given you an incorrect answer.
You can Add computer objects into "Security Groups" you can't add Computer objects to "Distribution Groups".
The user running the CRM installation needs permissions to create objects in AD, CRM creates the groups automatically, ask your AD admin to give you an OU in AD. I strongly recommend you read the Dynamics CRM implementation Guide:
CRM 4.0 -
http://www.microsoft.com/download/en/details.aspx?id=8162
CRM 2011 -
http://www.microsoft.com/download/en/details.aspx?id=3621
Don't spend time trying to install CRM wihtout adding the Computers objects to the groups, tell your AD Admin that is incorrect and you give him the CRM installation Guide.
Regards
Nuno
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