Home folder Creation problem solved (for me anyway)
What i had to do to fix this was to open Terminal and su to root, cd /automount, rm Servers and restart. When this was done going to Network in the sidebar and selecting Servers then showed an alias of my server HD which in turn showed the contents of the drive. I then used WGM to remove the network mount for home dir's and stopped sharing the folder. I then re-enabled the share and then set the home dir mount again. After this it succesfully created the home folders in that dir when asked to and I was then able to log in and manage the account.
I hope this is of some use to others...
regards Gary.
PowerBook G4 1.67 Mac OS X (10.4.7)