Creating User Dir on NT 4 Server

I need some help with setting up USER dir on NT 4 Server. I have a dir called Users and its shared with full control. I went into user manager for jsmith, clicked on profile and I have jsmith Home Dir connect to U: to \\Servername\Dir\User. I then went into the User Dir and created a folder for jsmith. When jsmith logons to server he sees U: drive and has access but he also has access to the other users folders. What have I done wrong

Thanks