Distribution/Version: Ubuntu hoary

Imagine you have an old account lying around in the /home partition, /home/foo.
 Now, from a previous instalation, foo had some random uid, thus /home/foo is
owned by this random uid.

Now go create user foo (in a lazy attempt to reactivate the account).  All looks
fine, except that the home directory for foo, /home/foo, is not touched, and no
warning is given.  If you try to login as foo, obviously this fails since foo
can't create files in his own directory.

This is not nice.  At least a warning should be given that the home dir for the
user already exists.  Option to "chown" the dir would be a nice bonus.