Unlike Windows NT, the SBS Users Shared Folders must have a share name of users and must have specific permissions. With Windows NT, you can setup the share(s) and permissions using tip 400 and tip 557. With SBS you must:
Share the Users Shared Folders as users with Full Control for Everyone.
Set NTFS permissions as:
Administrators Full Control (All)(All) CREATOR OWNER Full Control (All)(All) Domain Admins Full Control (All)(All) Domain Users Read (RX)(RX) Server Operators Change (RWXD)(RWXD) SYSTEM Full Control (All)(All)If the Users Shared Folders has been move or renamed, (or if the above permissions are not set) the Add a New User wizard in Manage Server will genrate:
Unable to create a shared folder for <username>.
When you click OK:
The Wizard successfully created a user account for <user_fullname> with the username <username>.
If the directory has been moved or renamed, you should unshare the folder and set it up properly. Then you must restart the SBS computer.