Comment 11 for bug 317895

Whole story:

On one laptop, I installed from the mini iso (and chose kubuntu-desktop, the
mini iso is the same for all *buntu) and found I couldn't login to KDE fully
because it couldn't write configs (rebooted and tried to login multiple times,
was driving people #kubuntu-devel nuts trying to figure out if it was KDE's
fault because KDE was throwing errors). I logged into the VT and saw that ~
had 500 permissions (while logged in as the only user on there). I did a
chmod 700 /home/maco ...and all worked well.

On this laptop, I was trying to figure out why that occurred, and here is where
I edited the ecryptfs-setup-private script. The first user I created with
adduser --encrypt-home was test3. When that user is not logged in the
permissions are 755. When that user is logged in, the permissions are 700.

Then after what you said I did some more testing. I commented out the if
statement I had added (so back to the original code) and did adduser --
encrypt-home test5. When this user is not logged in, the permissions are 500.
When this user is logged in the permissions are 700.