A home directory is a private storage space assigned to a user or group of users. Users typically store their private data in their home directory, and they can normally restrict or grant access to other users. When a user opens a Command Prompt window, the default directory is the user's home directory. The home directory can also be specified as the default working directory for applications.
If hard disk space on your network's client workstations is limited, you might want to assign each user a home directory on a Windows NT Server computer. Or, if you want to limit a user's access to the files and directories on a workstation, you can create a home directory on the workstation and give the user only List permission on all other directories.