I fixed the problem, run linuxconf under X and go under (file system) then goto access local drive, then go under (options) check User quota enable then un-mount , then re-mount.
LABEL=/home /home exec,dev,suid,rw,usrquota 1 2
The how-to for Quotation IS WRONG for redhat ( this worked under redhat 7.2 ,, (2.4.7-10) )
PS
Under /home quota.user is NOT USED, Redhat uses aquota.user
