[Samba] Auto directory creation not working

[Rok Kosir]

Hello,

I am experiencing problems with auto directory creation for user shares.

I have samba instance that is authenticated against samba PDC, on PDC i have 2 groups, group1 and group2.

What i want to do now is to have separate folders for user shares for each group.
so /mnt/share/group1/user1 would be for user1 in group 1 and /mnt/share/group2/user2 would be folder for user2 in group 2

root directories are crated (/mnt/share/group1 and /mnt/share/group2) with chmod 777  and owner is nobody:group1 and nobody:group2
If i do not create user folder manually, the user can not login with this error: "/mnt/share/group2/user2' does not exist or permission denied when connecting to [user2] Error was No such file or directory"

Now, is there any way to convince samba to create user folders(i have too much users to create folders manually)

The samba PDC is backended with LDAP(if this makes any difference).

Samba version is: Samba 3.0.33-3.29.el5_5 (latest from repo)
OS version: CentOs 5.3

here is the smb.conf:

[global]
  workgroup = WORKGROUP
  server string = Samba Server Version %v
  password server = 10.5.10.10
  encrypt passwords = yes
  add user script = /usr/sbin/useradd %u
  delete user script = /usr/sbin/userdel %u
  security = domain
  passdb backend = tdbsam
  template homedir = /mnt/share/%g/%u
  log level = 3
[homes]
 comment = CSL backup server
 path = /mnt/share/%g/%u
 valid users = %S
 write list = %S
 read only = No
 writable = yes
 create mask = 0700
 directory mask = 0700


any help and advice is very appreciated!
Cheers,
Rok