Franklin Jones on Jung:

Jung's work obviously has legitimacy, but it concerns the lesser domain of human growth. It is not really about religion in the highest sense, or spirituality. It is about the psyche. ...He did not really understand the process that goes beyond the psyche and its contents. He did not understand the spiritual process, or the higher stages of life, although the often commented on them. Not being a practitioner of the spiritual process, but rather being an investigator of the psyche's contents, he did not really understand what he was talking about.

[Jung] in fact communicated some ideas about spirituality that are suppressive of the spiritual process and possibility. Thus, the Jungians tend to confine people to this so-called Western mode of experience, which is concerned with individuation and ego-development and psychic self-knowledge, by communicating a number of taboos that actually work against people's becoming involved in the higher spiritual processes. These taboos state rather baldly that Westerners should not become involved in the higher spiritual processes, and these taboos therefore represent Jung's limit. -- The Transmission of Doubt, page 319-320

Jung on individuation:

In the anahata (heart chakra) you behold the purusha, a small figure that is the divine self, namely that which is not identical with mere causality, mere nature, a mere release of energy that runs down blindly with no purpose. ...In the center of the anahata there is again Siva in the form of the linga, and the small flame means the first germlike appearance of the self. ...So in anahata individuation begins. But here again you are likely to risk an inflation. Individuation is not that you become an ego -- you would then become an individualist. You know, an individualist is a man who did not succeed in individuating. He is a philosophically distilled egotist.

Individuation is becoming that thing which is not the ego, and that is very strange. Therefore nobody understands what the self is, because the self is just the thing which you are not, which is not the ego. The ego discovers itself as being a mere appendix of the self in a sort of loose connection. For the ego is always far down in muladhara and suddenly becomes aware of something up above in the fourth story, in anahata, and that is the self. ...The purusha is a symbol that expresses impersonal processes. The self is something exceedingly impersonal, exceedingly objective. If you function in your self you are not the ego -- that is what you feel. ...As St. Paul expresses it, "It is not I that live, it is Christ that liveth in me," meaning that his life had become an objective life, not his own life but the life of a greater one, the purusha. -- The Psychology of Kundalini Yoga

Frank (Adi Da), like many spiritual seekers who have taken a cursory look at Jung, misunderstood the individuation process to mean ego-development. And with this single misunderstanding, the whole of Jung's thought is misunderstood, for individuation is the key to Jung's view of the natural and psychologically complete process of spiritual awakening in man.

Individuation, for Jung, is the same as Self-realization. However, it is not the path of Self-realization as practiced in siddha-yoga, or guru-bhakti. It is closer to jnani yoga -- the self-inspection of the contents of consciousness. It is, in my experience, quite similar to the Eastern psychology of the deconstruction and "burning up" of karmas, sanskaras, vasanas, and mental-impressions.

No doubt Frank was exposed to the most superficial aspects of Jung's thought -- including the warning that tantra or yoga, practiced by a Westerner, could lead to madness. (In Frank's case this clearly proved true!) Quite often when a Westerner, in his urgency to take the most direct route to realization, practices trance-states and exercises to release latent spiritual energies, he doesn't individuate at all! He doesn't realize the self as a whole being -- rather he is absorbed into a living symbol. The ego doesn't re-cognize and die -- it simply identifies with the purusha, or some lesser divinity, and suffers an inflation.

In these cases all the unexamined demons will be released from the psyche -- the power motive and every form of human abuse will reveal themselves as the manifestation of the spiritual inflation. Such "realizers" are not enlightened at all. In fact, they are "individualists" -- men who did not succeed in individuating. They imagine themselves to be not human, but gods uniquely empowered to dominate and abuse others. And so they are. But achieving such "divinity" should not be confused with Realization, or Enlightenment.