Life Cycle Server 2008 is a server application to be run in Active Directory environments providing policy based user administration and managed operations.
I`ve just started working with this product at a customer wanting a system for user population automation in Active Directory.
Basically all users are imported from a file generated by a generic HR system, and the LCS 2008 application keeps this information in a SQL database.
Based on this data-source users are maintained in Active Directory.
There is also a policy-feature allowing to set domain and OU-wide policies for all kinds of user attributes, like group-membership.
Provided in an upcoming extension there will be support for PowerShell commands in these policies:
Regarding to policy linking, inheritance, blocking etc they work the exact way as regular Group Policies.
As an example you could insert a PowerShell script-block into a policy to check that each users` homedirectory exists using Test-Path, and if not, create the directory with the appropriate permissions.
For more information, have a look at the published product documentation.