adduser is setting permissions so everyone can read a users home directory. I've never done much configuration of this tool so I can't seem to find where to change this, I thought there would be an option in adduser.conf.
Here is a new user: drwxr-xr-x 3 test test 512 Oct 26 20:42 test I'd really like them to be 770 -- www.johntate.org