LOL and yet another discovery 
It appears the gadduser command is the issue. I went and added the user to a group manually and then i was able to login that user. Same is true for the amount of logins as well. After i had the user added to a group i got the max connections error. Added 1 login and he logged in just fine. 
 
It also seems to me the ioshare DB isn't complete as far as user file stats go. I know it was never completed so maybe thats the issue.
		 
		
		
		
		
		
		
		
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