This is an odd one, note sure is the actual drive shared? Which is not recommended. Why not just share the folders you want that reside on the local drive.
I think that you will struggle to do this as users need write persmissions to this folder to create/use their profiles.
The useres certainly shouldn’t be able to access any files or documents in other users folders.
You may be able to do this using folder redirection to shared network resources however I think you would still need access to the original locations for this to work as well.
Also they should only be albe to see the users that have logged onto that specific machine not all the users on the domain.
You can use scripts to remove all user profiles from a machine during startup. This would remove any information from the documents and settings folder so there is nothing for users to see.