Copy/move files and folders but remove all permissions to new server

How do I remove permissions from all files and folders in a user directory?

I have an antiquated "server", it started as a workstation, and later turned into the central file server. The problem is, its not a "proper server". Everyone just mounts the file share with the same username and password, and uses the Users home directory as the central file repository (it never occurred to us, to put it /Users/Shared). Its become a problem, more than 10 users trying to connect at once all using the same login/password.

For awhile, we've been sitting on SL Server, and now Lion server. Mainly testing, to ensure our legacy software will work on either. As of my last test, either will work.

So I want to fix this mess. I want to run a server OS, with each user having a unique login/pass, but still have access to the central file server. From initial testing, it seems permissions get in the way of existing files/folders(either accessing or editing). To fix this, I guess the best bet is to move everything off the "server", install a real server OS (SL Server or Lion Server), and put all the files and folders back on a shared workgroup folder or something. But what about the permissions, how can I remove them? I have root access, and the user/pass of "Standard account" everyone has been sharing on. Should I copy the data off with an external hard drive? or AFP? or FTP? Just trying to get rid of all this legacy permissions, so when the new OS is booted up, all the files and folders will work fine.

Thanks.