Distribution Groups are being published but they don't contain any members.
When selecting such DL's from the GAL and sending an e-mail the e-mails is not being sent/delivered to the members of those groups.
In order for the mail flow to work not only the DL but also all members need to be published, they should be included in the publication. One of possible ways to do this is selecting "synchronize members" option when including the DL.
In some environments members cannot be published but it is still desired to publish and use the DL's when sending e-mails.
In this case the following workaround can be used: during publication the group should be converted to a contact, this can be done using the supplied mapper (part of QCS).
The only drawback of publishing a group as a contact is users inability to expand the DL and look up the group membership, but it was confirmed that in most environments this feature is not needed, users just want to be able to send an e-mail to a DL, they never look up the members.