Sounds like you should have the following setup:
1. The share on the server is PROFILES
2. The share should have permissions to allow the EVERYONE group or the groups specific to the users (e.g. DOMAIN USERS) full access.
3. The user account should be set with the profile path \\servername\profile\userid (make sure the slashes are the right direction and if you substitute %username% for the userid it will give you an error if it cannot access or create the user's directory).
4. The Home directory setting should specify a drive letter not in use on the local systems (usually H:) and the path should point to the server where the home folders are (e.g. \\servername\profile\userid if using the same location ans the profile).
5. If you are manually creating the user's home/profile directory make sure that both Administrators and the specific user have full control to that folder.
If you have a number of BDCs you need to allow time for the account changes to replicate before attemting to try the login.
If you are not trying to preserve the profile currently in place on the local machine then go into Control Panel/System and delete it.
When the roaming profile setup is working you should be able to check Control Panel/System and see it indicate 'roaming' next to the currently logged in userid.
