For anyone who is interested the solution to this issue was to set the zfs 
mountpoint of the dataset being shared to legacy. This enables the proper 
sharing of the dataset to a client and the ability to open a terminal window in 
the zone sharing out the dataset. Does anyone know why this fixed the issue? 
The sharing was working properly before the mount point was changed to legacy. 
The only problem was a user could not open a terminal window in the zone 
sharing a dataset. How did setting the mount point to legacy enable the window 
to be opened? Thanks.
 
 
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