Right Here goes mate,
Here are the steps below (to be done as root user),
1. create a new group..for example I'll use the group "test01".
2. if you create a new user set there Primary Group and Group Set to the new group you created in step 1 (test01).
3. if the user already exist change there Primary Group and Group Set to the new group you created in step 1 (test01).
4. as root cd into "/home" change the permissions of the users home directory.
Example = lets say I have created a new user called "terry1", now his home directory would be /home/terry1, his current permission by default on his home directory are "drwxr-xr-x 2 terry1 staff /home/terry1", change the permissions too "drwxr-x--- 2 terry1 test01 /home/terry1" do this by the following
chown terry1:test01 /home/terry1
chmod 760 terry1
Now any other user not in the "test01" group will not be able to see anything within the home directory of terry1.
I hope this helps, let me now?