Comment 5 for bug 393386

The terminal problem comes from the fact that you're using 'useradd', while normal method on Debian systems is to use 'adduser'.

Though the real issue with users-admin is that in Jaunty we didn't remove user account, and failed silently when the home directory for a new user was already present. Those issues are fixed in Lucid, since we ask to remove home directory, and don't fail if it already exists. Thanks for reporting - you may want to test Lucid and check that this behavior works. Don't hope for a backport of the fix to Jaunty, though, as it required far too many changes.