I have added Confluence to my OnDemand account and have added a new user to Confluence only and updated a user to have Confluence also. When I try to set up a team space and add users I see the user I added Confluence only when typing in the name but I do not see the name when typing in the user I added Confluence too that was already a JIRA user.
Check that the user has access to JIRA and Confluence here:
https://confluence.atlassian.com/display/AOD/Managing+application+access
I ended up deleting the user and adding him in and that seemed to do the trick. This is obviously not ideal if the user has a bunch of stuff linked to them.
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