After you configure Calendar Server to support hosted domains (and after you migrate the directory data to Schema 2), user-developed applications and provisioning tools must use the following rules for provisioning new entries:
User entries must be underneath the people node in the Organization Tree.
Group entries must be underneath the group node in the Organization Tree.
Access Manager requires this hierarchy for provisioning user and group entries. Access Manager-based tools will not recognize users and groups provisioned under different nodes than the people node and group node, respectively.