Users are not being created in Active Directory

LDAP_NAMING_VIOLATION error is reported in the trace log:

The LDAP_NAMING_VIOLATION error is generally due to a problem in the placement policy. Make sure that you are placing your users in a valid context.

Confirm the following:
1) The placement policy is enabled on the subscriber channel.

2) The placement policy is specifying a valid context in Active Directory for users to be created in.

Example in XML:
**************************


cn=Users,dc=novell,dc=com


**************************

3) The document being sent to Active Directory needs to contains a valid destination dn. (dest-dn="cn=test01,cn=Users,dc=novell,dc=com)