Create a new group such as "restricted"
And then, when creating the user, assign them to this group instead of the default "users" group.
It might be necessary to change the permissions on current /home/user directories to 700 if you want to restrict them to only their user, or 750 if you want other users from the same group to be able to read and execute the files, but not write to them.
As a side note, it might not be entirely possible to lock them out of all other directories, as the user will probably need to run programs in the system's bin directories, and programs the user will be using will write temp files to the /tmp directory.
Last edited by Savet; 10-30-2008 at 10:10 PM.