Greetings,
mattjgalloway wrote:I have a server on my network which I admin and a few different computers access it. Basically I want to keep the passwd and group files updated on each machine without too much hassle.
Right off the bat, you are describing the ideal environment for cfengine. Cfengine is the Configuration Engine, it is designed to keep the configuration of many machines on a network syncrhonized. From what you describe, you won't need anywhere near the full power of cfengine, and could actually get away with something as simple of rsync, though I suspect if you start using cfengine, you will find many more uses for it.
Further, based on your description, LDAP is not a good solution for you. LDAP is meant to provide a centralized directory service, in your case passwd / shadow / group service. what this means in your case though is that each client machine on the network, would query your LDAP server for it's password / shadow / group service, instead of using it's own local files.
Please note that I use LDAP both on my home network, but also my network at work. At home I manage 3 to 30 systems and at work between 40 - 200 systems. Additionally, I use cfengine to keep my /etc/passwd, /etc/shadow, and /etc/group files synchronized, with minimal user information, on all of my systems just in case the LDAP servers go down.