When setting up an alert to an AD group you need to ensure the items below. No alert notification will be sent if the following criteria is not meet.
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Your AD group must be e-mail enabled
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Your AD group must have read access to the list or list item targeted by the alert
The out-of-the-box alert templates do not support alerts targeted toward a SharePoint Group. To enable this feature you have to setup an alert with a custom alert template. You can create a new alert template on-the-fly when adding an alert by clicking Use a new custom template link in the Notification Message Body section on the Add Alert page. Read more about alert properties here...
http://software.sharepointsolutions.com/support/knowledge/AlertManager/Pages/am0015.aspx
You can also manage alert templates from the Application Management page of your Central Administration site. Click Manage Alert Templates under the Alert Management section. To use this feature you have to deploy Alert Manager to your Central Administration site with the Component Configuration Manager.
(Points of integration)
http://software.sharepointsolutions.com/support/knowledge/AlertManager/Pages/am0002.aspx
(How do I use the Component Configuration Manager?)
http://software.sharepointsolutions.com/support/knowledge/AlertManager/Pages/am0002.aspx