Differential cross-sections for the reactions d(gamma,pi (o))d and d(gamma,pi (o))pn have been measured at MAMI with the TAPS detector setup in the energy range 140 MeV < E- < 306 MeV. By use of the Glasgow tagging spectrometer an 0.8 MeV energy resolution for photons incident on the target was achieved. The (o) missing energy resolution was sufficient for a reliable separation of coherent and incoherent channels. The data for the break-up channel exhibit very strong final state interaction effects, whereas the observed angular dependence of the inclusive process d(gamma, pi (o))X is in quantitative agreement with predictions for a quasi-free process. The observed absolute d(gamma, pi (o))X cross-sections, on, the other hand, are significantly smaller than predicted by the quasi-free process for E-gamma greater than or similar to 250 MeV. Associating this failure with the pi (o) photoproduction on the neutron would suggest that its cross-section is up to 25% below the presently believed value.