System administrators should make sure they make a link from passwd to whatever command actually handles password changes on your system. However it is important to keep the original passwd command is some location because occasionally the need arises to use it. Creating the home directory As root any directory you create will be owned by root. As such you must remember to change the ownership of the directory over to the user you are creating it for with the chown and chgrp commands. I recommend creating user directories with protection of 700.
Users can always open up their account to access.
The group file has four fields, groupname, password, group id, and members. Like the password file this file uses colons to seperate the fields. Users are limited to either a maximum of 8 or 16 group memberskips. Copy the startup files to the directory While not required often it is useful to copy in a set of default startup files. Which files need to be copied depend on the shell used.