Now where did I hear that before?
You must have some Linux knowledge, but no knowledge of E-Smith.
Sounds like you are not doing things "The E-Smith Way".
Try creating everything from the Server-Manager.
Create a user.
Create a Usergroup.
Put the user in that group.
Create an Ibay and give the group permission on the Ibay.
Make sure that the password of the user and the password of the Ibay are the same.
You might also have a look @
http://www.e-smith.org/docs/manual/