Integrating OS X Lion server 10.7.4 and Lion clients with Active Directory

I can't seem to figure out how to use profile manager successfully to manage my Lion clients using a Lion server along with AD integration. We want our users to be able to log into our 25 or so lion clients using their AD usernames and passwords, be able to access their home directories, and be able to apply some level of 'policying' to the machines and can't seem to figure it out. Am I reading this right that I need to 'enroll' my lion clients in profile manager or something and if so how do I do that? Any information or help would be greatly appreciated, thank you!