User name shows document&setting?

Hi
When I create user account on Server 2003 and then login with newly created user via client pc which is XP under Document & Setting all other user name I can see they are in form of folder and I have no permeation to open that which is normal. But my question is is this spouse to be there? or it is normal. Every single user name on the server will be in when I login to the client pc. or i am doing something wrong when I create users on server. I need your help

Thank you