I think your problem is related to a permissions problem with /etc/skel which is what's used to 'reset' users folders/settings/configs/etc. As posted by urbanvoodo in this thread (
http://www.vectorlinux.com/forum2/index.php?topic=3422.msg24479#msg24479), you should adjust the permissions of /etc/skel so that group and others can have read access (recursively). Once you've changed those permissions you should try the 'reset' method again via VASM.
i checked the /etc/skel folder through thunar(root) and it turns out that all files and folders are set to the following permissions:
owner : root
Access : read/write
group : root
Access : none
others : none
I changed these to:
owner : root
Access : read/write
group : root
Access : read only
others : read only
and then skel worked. these permissions have to applied to every file and folder so its best to use the apply recursively option when the dialog box pops up.
The command would be this (as root):
chmod -R a+r /etc/skelHope this helps.