problems with vista redirected folders

I'm wondering if anyone can provide me an explanation of the following
scenario.

I have a fileserver with a share that contains folders for each user. Ex.
\\server1\share1\user1, \\server1\share1\user2, etc.

Each user has full perms to their folder and ownership is set on the folder
so that each user's quota can be set.

When a vista PC redirects a folder, Example ....redirecting Documents to the
network share by redirecting to \\server1\share\username, we've noticed that
the folder appears as a Documents icon in the Explorer window and has an
explorer name of Documents (there are hundreds of them when looking via
explorer on the console of the server), yet the actual folder name is drive
letter:\share1\username. When viewing the folder via network, you can
connect by going to server1\share1\username, but when looking on the console
of the server on drive letter:\share1\username...the folder appears in
explorer as Documents and not the name.

What is redirecting documents doing? The user has read privs on the
\\server1\share1 level, and cannot create folders there.