adding users fail

[seany]

Hi. I am having troubles adding new users via directadmin.
Whenever the user is created their home dir seems to inherit the
permissions 700, ie:
drwx------ 3 root root 1024 Jan 26 19:17 testme

the /home directory has 711 permissions.
drwx--x--x 27 root root 1024 Jan 26 19:17 home

This has only happened recently but I don't know why. It was working fine
for weeks until a few hours ago. It seems to be after i deleted a user
through directadmin.

Urgent help required please, as no resellers can create accounts either

Below is DA's output when adding a user:


User testme created

Details


Unix User created successfully
User's data directory created successfully
Domains directory created successfully
Error Creating ~/domains
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission



Unable to create directory /home/testme/domains/testttttt.com,
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission

Error creating /home/testme/domains/testttttt.com/public_html
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission

Error creating /home/testme/domains/testttttt.com/public_html/cgi-bin
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission

Error creating
/home/testme/domains/testttttt.com/public_html/cgi-bin/.htaccess
Unable to open
/home/testme/domains/testttttt.com/public_html/cgi-bin/.htaccess for writing

Error creating /home/testme/domains/testttttt.com/private_html
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission

Unable to create directory /home/testme/domains/testttttt.com/public_ftp,
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission

Unable to create directory
/home/testme/domains/testttttt.com/public_ftp/incoming,
Parent directory does not allow write, or one of the directories didn't
allow search (execution) permission



Error Creating Domain


User's System Quotas set

Edit: This also happens when running useradd from the shell.
Edit2: Seems to be due to a damaged group quota file.