Well kids if you did not know about this little known bug now you do. Even if you email enable your active directory group, then SharePoint may still not send alerts. I have no idea why this problem occurs. If you search for that AD Group, then you will notice no e-mail address will show up for that group even if it has an address attached...Well I did some googling and I found this beautiful article: http://blog.gavin-adams.com/2007/10/26/sending-alerts-to-groups-in-sharepoint-2007/. Basically, what you need to do is shove your AD Group in a SharePoint Group and make sure it is added to the permissions for the site that you would like to add the alert. Now you can add alerts and the e-mail address actually shows up in the user search. I spent an entire week thinking it's not setup somehow in AD...We should not have to add an AD Group in a SharePoint Group. It makes me wonder if this is a "feature" or "accident"...
Man I can't wait for 4:30 CDT...My body is not loving returning to work today...It feels like I am 10% healed and needs tons of r&r.