You don't need a /home volume but you do need a /home directory. ls -l / will show you the top level directories.
Please clearly state the problem. Is the problem with quotas or with creating a new user? The two things are not necessarily related.
when i do that command i get :
[root@server1 etc]#ls -l /
total 76
drwxr-xr-x 2 root root 4096 Apr 22 08:41 bin
drwxr-xr-x 3 root root 4096 Dec 2 17:19 boot
drwxr-xr-x 10 root root 2840 Apr 23 06:20 dev
drwxr-xr-x 45 root root 4096 Apr 23 07:39 etc
drwx--x--x 6 root root 4096 Apr 22 12:57 home
drwxr-xr-x 9 root root 4096 Apr 22 08:41 lib
drwxr-xr-x 7 root root 4096 Apr 23 04:49 lib64
drwx------ 2 root root 16384 Jun 6 2009 lost+found
drwxr-xr-x 2 root root 4096 Mar 11 2009 media
drwxr-xr-x 2 root root 4096 Mar 11 2009 mnt
drwxr-xr-x 2 root root 4096 Mar 11 2009 opt
dr-xr-xr-x 102 root root 0 Apr 23 06:19 proc
drwxr-x--- 5 root root 4096 Apr 23 05:01 root
drwxr-xr-x 2 root root 4096 Apr 23 04:49 sbin
drwxr-xr-x 4 root root 0 Apr 23 06:19 selinux
drwxr-xr-x 2 root root 4096 Mar 11 2009 srv
drwxr-xr-x 12 root root 0 Apr 23 06:19 sys
drwxrwxrwt 4 root root 4096 Apr 23 07:39 tmp
drwxr-xr-x 15 root root 4096 Dec 4 17:26 usr
drwxr-xr-x 20 root root 4096 Dec 4 17:30 var
and the problem is with creating an new user.
when i do quotaon -p / i get the following error
-bash: quotaon: command not found
what can i do more? or what do you want me to do that i can show?
many thanks