I am still unable to access network accounts. any other ideas? Maybe the tutorial i followed was wrong. If anyone has a step by step on how they did it? Any help is appreciated.
You are doing what is called nested home directories. This is covered in the guide I linked you to.
If you aren't going to do groups, you simply need to add the nested path in WGM.
EDIT: You can ignore the section for the groups, that is really just for organizational purposes. You just need to add Family in the section "Path to Folder" when editing the home directory for a user.
EDIT2: You never answered my question as to whether or not you bound the computer to the OD server. Do you have DNS running properly? Did you add the DNS server address to the client machines? These are all key factors in troubleshooting the login problems.
With the login window up, click on the name of your computer (or the date/time) whatever appears directly underneath Mac OS X in gray letters, keep clicking until you see a message about network account (better yet, you can manage this with MCX). Does it say network accounts are available? If not, you either a) didn't bind the machine to the server (You need to do this in Directory Utility) or b) your server is not accessible because of DNS or you don't have an active connection to your server.
You need to give is more details about what you have done in order for me to help you. My guess is that you have missed some of the other steps that you need to do before you can login. I have 10.6 server running right now, so I can help you. I just need more information.