Try this from a command line on the Server.
xcacls %LOGONSERVER%\users\dan /T /G "Administrators":F dan:F
If you are not using Windows Home Edition why don't you use the built in feature and redirect My Documents.
I normally create the Users Home Directory Folders first. EG: D:\users\user1
The Base Users Folder needs to be Shared with appropriate permissions.
Open up Active Directory users and computers. Select all users that need the update. They all should be highlighted. Right Click Properties, Profile Tab, Place a check mark in the home folder. Click Connect radio button, provide the drive letter and path: \\server\Users\%username%.
Permissions will be applied.
The next time that the user opens My Documents or navigates through Explorer he/she is in his/her Home Folder on the specified Drive Letter.
< another alternative >
How to assign a home folder to a user
http://support.microsoft.com/kb/816313
Assign a home folder to a user from the command line
You can use the net user command to assign a home folder to a user from the command line. For example, at the command line, type the following command, and then press ENTER:
net user tester /homedir:\\server\tester$
This command assigns the tester$ hidden shared folder on the server to the user Tester.