The best method to determine the appropriate setting for the AD Group Distinguished Name field can be found by using the Sysinternals AD Explorer tool, which is availableĀ on the Microsoft Technet website.
After you have downloaded and installed AD Explorer:

The result should look similar to:

OU=Employees,DC=domain,DC=com,dchost [dchost.domain.com]

In this example, the AD Group Distinguished Name would be:

OU=Employees,DC=domain,DC=com