home directory problems with Fedora 8

[Chris Howard <chris yipyap com>]

I have previously existing home directories under /u01/home.
I did this because upgrading from FC6 to Fedora 7 caused me trouble
and I want to avoid having to recreate my home directory.  So I copied
the whole system into /u01 before doing a fresh Fedora 8 install.  I
do not have a separate home-only partition.

SELinux prevents me from making a symbolic link like this:

/home--> /u01/home  or like this

/home/chris--> /u01/home/chris.

If I setup a dummy user with home at /home/chris, then
edit /etc/passwd to change the home to /u01/home/chris... that doesn't
work either.

nor if I create a new user like so:

useradd -d /u01/home/pete  pete

Is there something magic about the string '/home' ?
that keeps me from creating home directories anywhere else?

I'd really love to keep from smashing /home on every OS reload.

For now I have SELinux in Permissive mode so I can at least use the
system.