[K12OSN] overwrote user's home folder -permissions issue

[tkathan at charter.net]

Recently reinstalled server. Performed backup of home folders. I recreated a user, and then replaced their new home folder with the backup copy of their older home folder. 

Upon logging in, this error comes up "User's $HOME /.dmrc file is being ignored. This prevents the default session and language from being saved. File should be owned by user and have 644 permissions. User's $HOME directory must be owned by user and not writeable by other users."

I chmod that file to 644, logged back in, same thing. I tried to change some permissions as root on the user's home folder, but nothing I do seems to make this message go away. Also (as expected) all her desktop icons have the "unwriteable" ghostbuster sign on them.

Any help would greatly be appreciated. Thanks!