Create a node of Type A with referenced users and trigger a rule to auto-create nodes of type B for all the referenced users

For the last 4 days I am trying to make something work - putting in 8 - 10 hours on it. Here is the situation:

1. A user creates a node of content type A and reference one or many users
2. When that node is saved, i want to create NODES of content type B - one node per user referenced in node type A
3. All the fields in the newly created nodes will be a copy from type A

The approach I adopted was Views + VBO + Rules.

I have extensively followed johan.falk @ node one help and screen casts but still not able to figue out how to do it. I feel that the issue is something related to passing the User and Node arguments.

Any help would be much appriciated