AD on W3K SP1 server named ad1 , user directories on W3K SP1 server
named home1. home1 is using FSRM for quota management. I created a
share named USERS on home1. Then on ad1 I modified several users
Profile - Home folder settings to Connect H To: \\home1\USERS\%USERNAME
%. When they login a folder is created on home1 with each users
login name. Great! But then I check on rights and find out they
can all read and write to each others folder. I was under the
(misguided??) impression that AD would auto assign the correct rights
to user folder upon creation.

F: properties are Admin Share with Default permissions.
F:\USERS share permissions are Domain\Domain Users - Full Control
F:\USERS\userFolder set as Do not share this folder

It looks to me like the properties of F: are being inherited by the
sub folders, if so what is the best practice for assigning permissions
on this set up?