FC2T2 - can't login as normal user - home directory does not exist message (wrong)

[Edoardo Comar]

After an install with SELinux enabled
logged into kde as root, and added a couple of normal user with the add 
user graphical tool, specifying UID manually and creating their unique 
group names as the user as well.

I had their userdirs created and I could also get into them by executing
su - myuser
(answering  no to the security context question)

but if I try to login from the kdm prompt
the login fails and the error message is that the /home/myuser directory 
does not exist
I can only log in a failsafe session using / as temp home

Edoardo