2. It appears the DDT can't create Logins at the database server level or Users at the database level or am I missing something. It appears the only security it handles is for Microfour's Role-based Security tool.
The Browse service has to be running in order to "see" a SQL Server instance. If you type in the name directly, and the server is there, then it will work. The other thing that I have seen get in the way before is a firewall. But I would imagine that you are dealing with the first scenario.