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What is the best practice for sharing private home folders with the users (Windows Fileserver with AD)?

I was asked this question today after someone watched this video, and it got me thinking.. https://www.youtube.com/watch?v=luFy1wOD6uE I watched a few like it and everyone is doing the same. In the past i have done this, and i thought that this was the way to do it.

/Home$ (Root home folder)[Shared with Administrator and Domain Administrator]
 -> user1 ( Users private folder ) [Not shared, security set to include "user1" with r/w access]   
 -> user2 ( Users private folder ) [Not shared, security set to include "user2" with r/w access]

To me it seems bad to share the root folder with "everyone" seeing that "everyone" can index the shared folders. Have i been doing it wrong the whole time?

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Using the Everyone group as you see is in the Microsoft Windows best practices that you can see there: http://support.microsoft.com/kb/274443

This is for historical reason that we can still think the Everyone group allows unauthenticated users to connect to some resources. In reality, Everyone group requires that the user and its computer belong to the trusted domain of the computer where the resources are in order to give access to a resource. If it's not the case, an authentication is required by a security pop-up.

You can have better information about this here: http://support.microsoft.com/kb/278259

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