Thanks to all who have tried to help me here. I just checked the server logs (duh) and there are errors when the $ldap client is attempting to make the changes. It's an error 65 on a Sun ONE Directory Server. I'll look at what's going on and report here.
Clearly, the $entry->update method should have been working correctly; I am making another mistake somewhere else. More info when I figure out this error. Thank you everyone for your replies! Ed