Mac OS X 10.10 Server Open Directory and Home Folders

I have a new Yosemite server and I'm trying to get it to create home folders on local machines when a user logs in. So far my success seems to be random and it seems like I just keep doing the same things over and over again to get random results.

This is what I've tried so far:

First Try:
- Create new user on server, confirm that user is in proper group, confirm user has all services enabled, set Home Folder to None - Services Only; bound laptop to server with all default settings and confirmed green light, confirmed that user didn't already exist and that no home folder existed on either the server or the laptop

Results:
- Could not login a other user

Second Try:
- Create new user on server, confirm that user is in proper group, confirm user has all services enabled, set Home Folder to Local Only; bound laptop to server with all default settings and confirmed green light, confirmed that user didn't already exist and that no home folder existed on either the server or the laptop

Results:
- Could login, but folder was created on server
- Could login, but then got error message saying that "os x needs to repair library to run applications"

Third Try:
- Create new user on server, confirm that user is in proper group, confirm user has all services enabled, set Home Folder to Local Only; bound laptop to server with all default settings and confirmed green light, confirmed that user didn't already exist and that no home folder existed on either the server or the laptop; Went into Open Director Utility and changed active directory from smb to afp (not sure how this helped, but it seemed to temporarily) and checked of create mobile profile

Results:
- Could login and user home folder was created both locally and on the server

Fourth Try:
- Create new user on server, confirm that user is in proper group, confirm user has all services enabled, set Home Folder to Local Only; bound laptop to server with all default settings and confirmed green light, confirmed that user didn't already exist and that no home folder existed on either the server or the laptop; Didn't make any changes to Open Directory Utility

Results
- Could login, but folder was created on server
- Could login, but then got error message saying that "os x needs to repair library to run applications"

Fifth Try:
- Used same user as fourth try and went into Open Director Utility and changed active directory from smb to afp and checked off create mobile profile

Results:
- Could login, but folder was created on server
- Could login, but then got error message saying that "os x needs to repair library to run applications"

I'm not sure what else I can do. I really hope someone can help me with this.

We would like to convert about 15 MacBook Pro users from local users to OD Network Users in order to have more control over their machines and be able to more easily reset passwords when necessary. We also thought it was just the way OD is supposed to work, but please tell why we shouldn't do this if it's really not "the best practice". We imagine that larger Mac centric organizations must have some kind of solution to this madness, but we don't know of any.
btnyAsked:
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codysearlCommented:
Hello,

It may be something as simple as permissions on the drive are messed up. Have you tried to verify disk permissions and repair if needed using the Disk utility?
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btnyAuthor Commented:
Yes, verified and repaired permissions... Did that after First Try.
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btnyAuthor Commented:
Also tried to do this on a different laptop. Perhaps it's the server?
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codysearlCommented:
Did you run the disk utilty on the sever or on the client?
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btnyAuthor Commented:
Ended up not using home folders on the server and just left them locally on user's machines.
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btnyAuthor Commented:
In the end didn't find it necessary to use home folders on server since most data is kept on server shares which is backed up regularly.
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