I have had an issue where when I asked my server to create home folders it was not making them. I also tried all the usual things like removing the share, sudo createhomedir -a and even ran the combo updater on the server again all to no avail. Upon looking at another server that was creating home folders I found that when I selected Network in the Finder SideBar there was an alias of Servers. This alias on the working server showed an alias of the server HD and in turn showed the contents of that drive. On the server that was not working the Servers alias in Network was an alias of a white document and showed nothing.
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.
great stuff, last time this happened to me i just backed up the directory and formated reinstalled restored and it worked, took 3 hours...this would take a lot less time... post this in mac os x hints to eh..