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If you are running Windows based infrastructure and need directory based quota’ing (a feature you would have grown use to in Netware since about 1992 :) ) check out Windows 2003 release 2 (R2).
In 2003SP1 user based quota’ing on ‘home drives’ works fine but has proved to be a real pain on group shared resources like ‘shared drives’. Really on ‘shared drives’ one wants to assign quota’ing on a group basis; directory based quota’ing is the next best thing.

The quota features available in R2 are welcomed but pretty basic from my first inspection; for example quota amounts are not reported as the amount of free disk space in explorer – it still reports volume free space. This might get confusing if the share is reporting disk space free and a user gets told they ‘can’t copy that file here due to insufficient space’ in a directory which has a ‘hard quota’ set.

Ce la vie, R2 is better than nothing, you’ll have to pay for the pleasure, its not a free upgrade, and make sure you check out the allowed upgrade paths.