Bill,
That was very well put and explained. However, my problem is that I've tried that and it doesn't work. What you've described is my set up that I had started with before I posted here.I originally had the home directory set up that way. That is, the location is C:\users\bsmith on server SERVER. USERS was shared as "users," and BSMITH was not shared. In Active Directory Users and Computers (since this is a W2K server), on BSmith's profile page, I had set his home folder to be: \\server\users\%username%
But when I use NET USE U: /home, I get a mapping to USERS and not the BSMITH subfolder. I checked to see that USERS was shared and permissions were correct. It was. I checked to make sure that the BSMITH subfolder was there and that permissions were correct. They were.
So what I'm getting is a mapping to the share and not the subfolder below the share.