Yes they need to be security groups and yes in general it will (should) pick up membership via nested groups but not the Distribution Groups.
I don't see the reason for placing Distribution Groups within Security Groups. The Distribution are more so for Exchange and not Security management.

There are ways to check a Distribution group, but a bit more code and complications involved.

Much easier to use Security Groups and InGroup


Edited by NTDOC (2006-06-05 08:22 AM)