Hi there
I do have the same problem and just found your site.
I do run a Xserver with OS X 10.3.8 and I have my FM7 server configured to access the Directory service on a Windows 2000 server, running an ADS Domain. All worked fine until I installed FMS7_V3. No I do have the same problem.
Before the update, I was running FM7_V0 and had no problems at all (beside a VERY solw login to the databases).
If I can't find a solution to get it back running, I'll delete the installation and reinstall FM7_V0 from my CD (I have done this befor as I had the same problem with FMS7_V2).
I hope this does help someone.