When you open the users profile in ADUC, you will see that there is a field called "Home Folder". You can use the "Connect to" option to map a drive to the share on the file and print server eg \\fileserver\users\%UserName%
On the fileserver, create a folder called users and share it. Change the permissions as follows:
1) Turn off inheritance on the folder and copy the permissions. You do this by:
a. Click the Advanced button found on the Security tab.
b. Clear Allow inheritable permissions to propagate to this object check box in the Advanced Security Settings dialog box.
c. Click Copy when prompted by the Security dialog box.
2) Click OK to return to the Security tab. Ensure we have the following permissions set:
Administrators: Full Control
System: Full Control
Creator Owner: Full Control
Authenticated Users: Read & Execute, List Folder Contents, Read
3) Change permissions for Authenticated Users so they cannot access other users’ folders. You do this by:
a. Click Advanced on the Security tab.
b. Click Authenticated Users, and then click Edit.
c. On the Permissions Entry for users dialog box, drop down the Apply onto and select This folder only.
d. Click OK twice.
You can find the original article for Windows 2003 (Should work in 2008) here