More about adding a user in linux

Some distro configures useradd / adduser commands to create a directory while adding a user account. I suggest you use -m switch to create home directory for new user.

Code:

useradd -m -s /bin/bash userName
passwd userName

To solve your current problem, login as root and create directory manually:

Code:

cd /home
ls -l
mkdir scheiber
chmod  0700 scheiber
chown -R scheiber:scheiber scheiber

To check the permission:
http://www.howtogeek.com/howto/ubuntu/add-a-user-on-ubuntu-server/