At first view it seems to be correct but why simply don’t you let Windows do this?
If you’re in an Active Directory (click <i>Start/run/dsa.msc</i>) then select all the users and set their homedrive to <b>\\SERVER\USERS\%USERNAME%</b> using this method Windows will create subfolders named as the user account and set correct permissions; also you will already have the user’s homedrive mapped.
P.S. Anyway I always prefer granting access to <i>Authenticated Users</i> rather than <i>Everyone</i>
Don’t forget to give the Servers Administrators Full Control of the users folders otherwise you won’t be able to delete the folders when the user leaves, and more importantly you don’t be able to backup the users data.
Good answer, the only additonal comment I have is to try not to grant full control freely, there are subtle differences between having write access and having full control.