What I have is several web packages.
D-Web1 = 50MB of disk space.
D-Web2 = 300MB
D-Web3 = 1000MB

I made 3 groups called the hosting package name.  
I'm putting new users that request linux hosting, into the group that
they are paying for. So lets say someone went the cheap $4.95/month route,
they get 50MB of space. So I put their account's primary group as D-WEB1.
  

Thing is, they're getting exceeding quota errors. But they only have
3 or 4 1k html files in their home/www folders.

Am I assuming correctly that when I do group quotas, when I put them
in a group, it gets the 50MB policy for them and everyone else in that
group for their /home/www folders, or does everyone in that group combined
get 50MB so that when everyone in D-WEB1 has 50MB total together, they're
exceeding the quota?

-- 
Mark Hutchings
desynergy@onebox.com - email