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It appears as though you can do most things in the Lion Server WebUI (Profile Manager), but I can't seem to be able to add/remove users (or find an answer).

Is this possible?

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Not yet. You can only do this through or Workgroup Manager, or System Preferences if you're not running Open Directory.

You can create Device Groups through the web interface however.

I highly expect Apple to add this to the web UI in future updates to Lion or 10.8.

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