[dexter1]

Xsession: <user>: user "user": cannot chdir to home "/usr/people/<user>" (err 13), using "/"

Error 13 is Access Denied, see /usr/include/sys/errno.h

Code:

#define EACCES  13      /* Permission denied                    */

Access rights on /usr/people are:
700 root : sys

That can't be good. This is what i have:

Code:

oberon:/home/frank> ls -lartd /usr
drwxr-xr-x   50 root     sys         4096 Aug 18 11:19 /usr
oberon:/home/frank> ls -lartd /usr/people
drwxr-xr-x    3 root     sys           18 Jan  1  1996 /usr/people
oberon:/home/frank> ls -lartd /usr/people/*
drwxr-xr-x    2 guest    guest         47 Jan  1  1996 /usr/people/guest

So all these are permission 0755.
Your permissions for /usr/people seem to be wrong. Permissions of nested subdirs like /usr/people/<user> are affected by permission settings of higher directories, so try as root:

Code:

chmod go+rx /usr
chmod go+rx /usr/people