Problem

"Specify a valid Home Directory. An unsafe path is being used" error when creating an account.

Resolution

By default, there are directories considered as unsafe for home directories. The full list is:
/audit/
/bin/
/boot/
/dev/
/etc/
/kernel/
/lib/
/lpp/
/mnt/
/modules/
/net/
/opt/
/platform/
/proc/
/root/
/sbin/
/stand/
/sys/
/tftp/
/usr/
/var/
/vol/

You could ether specify a home folder, that does not match any of these or remove your directory from the unsafe list.

In case you would like to remove it, navigate to the Admin GUI -> Operations -> Server Configuration and:

1.    Search for parameter “ UnsafePaths ”
2.    Edit the list and remove the necessary line containing
3.    Save the list
4.    You should now be able to create an account with home folder in question.