Ok, thanks.
the problem is now resolved.
I did the following:
grep vanessa /etc/passwd /etc/group /home/e-smith/db/accounts
=> /etc/group:vanessa:x:5068:
For some reason, when deleting this account from the web interface the group ref. for this user account was not properly delete from the file /etc/group.
After making a backup of the file /etc/group, I did:
nano /etc/group
and removed the entry for this account.
I was then able to create a new account for 'vanessa'.
***** The problem remains when I delete an account and try to re-create it. ******
**** The only way - at the moment - is to remove the entry from /etc/group before re-creating it ****
I have 3 SME servers running the up to date Version 8.1 ... and only one server is behaving this way.
What could cause this ?