Good morning! Well, I compared the nsswitch.conf files both in the jail and outside and they were identical. I also went ahead and turned off RADIUS authentication to see if it was affecting this and it didn't seem to make any difference. I did find that I had overlooked a step during the install - I didn't put the jailkit startup script in the appropriate directory. After doing that, jk_list does appropriately show my jailed user and the correct jail directory. Unfortunately neither the "script" nor "rootsh" programs are working inside the jail but I can't tell that this has anything to do with jailkit and seems to be application specific. Jailkit is a great program!
FYI - Both programs cause the shell to fork and create a new entry under /dev/pts but this process seems to fail inside the jail. I tried mounting a devpts file system at /xjail/dev/pts but that did not seem to work. I'll keep banging on it. Thanks again for your help!