Sharepoint 2010 - No exact match was found. Click the item(s) that did not resolve for more options.

Are the users from the same domain that SharePoint is joined to?

yes

http://social.technet.microsoft.com/forums/en-us/sharepointadmin/thread/FA985D8F-0499-43F7-A0BC-38047F9C0DA0

I've read through this before..  WHICH solution pertains to my problem?  I guess later today I can try all of them..  There is only a few suggestions that I haven't already tried.

You would think this would just work out of the box?!

I've deployed probably 100 farms in the past 4 years and all of them have been able to resolve people out of the box.

Maybe you should run the config wizard again.

The solution I was referring to is the set account directory path.

I've already set the account directory path yesterday...  It first showed the below path for the user path.  When I run the set command with my domain info it appended the path to the users... It's also below...

<SiteUserAccountDirectoryPath />

<SiteUserAccountDirectoryPath>CN=Users,DC=mydomain,DC=local</SiteUserAccountDirector
yPath>

With the above path it still can't find the users and I have a few users in the the 'Users' container.  

Now, maybe I should explain the install process I did...  I've done this twice with the same results...  

I did the complete option and pointed to an existing SQL install for I didn't want to use SQL express.  Is that maybe the problem?  This is just a lab so I can restore my VM back to any state if needed in the event a reinstall makes sense... I did two clean installs using the complete option... Should I try something else?

I finally figured it out myself...  It was such an odd issue I assumed it was something to do with my win2008 install