unable to retrieve settings for this user

Just setting up my new mac mini server for first time. It is updated to Mountain Lion. Setup local network user account with account name same as local short names on other macs (same on all of my mcahines). Then used System Prefs> Mail, Contacts, and Calendars.... to add a server account. Used exact same account info as on server (had both open to view).

Get the message: "unable to retrieve settings for this user"

Turned of firewalls... still not change.

Did search for this problem.... no real helpful responses.

Thought I was following all the basic steps to add a local network user. What am I missing?

Thanks