Doing CIFS home directories on the filer is really great, and the filer really helps you with this, even down to setting quota's if you wish.
You basically define the style you want your users to get mapped to (generally I use "ntname") and the filer will translate a generic path for every single user. So all you need to do is map your users to "\\filername\~" and this gets translated to their own personal home directory.
The home directory doesn't need to all be in the same volume either, so you can tier users separately, or departmentalise their volumes if you wish.
The only thing it doesn't do (please correct me if it now does), is create these folders for you. Usually when you setup a home directory from within AD it will create it for you, but as the filer is here creating a top level share for you, AD wouldn't understand that. A work around is to set an admin share above the users home directories (so if your users home directories were in /vol/home_dirs/users/, you would create a share off /vol/home_dirs), then when creating a new user, enter their home directory as this path. Windows has access, so will create the folder, then go back and change it to "\\filer\~".
There may be a better way, but I haven't setup home directories in awhile now, so sorry if this is a bit misleading.
The docs Andrew pointed out are a great resource though. Read up on "cifs homdir" and it'll give you some good options. Also look into using Qtree's. Even if you don't want hard quota's, putting in soft quota's are a great way to get visibility of what storage people are using.