you said "We copied production database to dev environment and connected to dev environment. ".
I am talking about this database. How did you connect?.
ideally these are the steps.
1. Take a backup of production <orgname_mscrm> database.
2. Restore it to dev sql server.
3. In a server where crm is installed, import the database as new organisation.
4. You will be provided with an option to re-map the users.
please let me know if this is how did it.
regards
Jithesh