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This post is contributed by my colleague, Abi. I would like to share out here since it is very usefully.

If you have MOSS users in different AD domains, and for dunno wat reason you can’t seem to search these users in the MOSS’s PeoplePicker, run a stsadm command to add the information about the those domains where the user is located.
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In summary:
“We went to SSP and clicked on User Profiles and Properties under the “User Profiles and My Sites” section and then clicked on View Import Connections and then added domain1.company.com to the Import Connections list and I started a full import. It completed in about an hour and imported users from the domain1 domain.
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The problem we run into is that when I go to add them to a site to give them access, we are unable to find the users by using People Picker. We only find users from the domain0 domain which the moss server is on. ”
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I found out that by default People Picker can only find people in the resource domain - the domain that MOSS servers are in. For other domains/forests, you’ll need to run the following command:
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Stsadm.exe –o setproperty –pn peoplepicker-searchadforests –pv <list of forests or domains> -url <webapp>

Official MS site:

• http://technet.microsoft.com/en-us/library/cc263318.aspx

Some examples:

• http://blogs.msdn.com/joelo/archive/2007/01/18/multi-forest-cross-forest-people-picker-peoplepicker-searchadcustomquery.aspx  
• http://blogs.msdn.com/jingmeili/archive/2007/02/26/people-picker-in-moss-2007-can-t-find-people-in-non-default-domains.aspx