Setting up disk quotas manually is good for small networks but for larger ones group policy can make this a lot easier.
The disk quotas feature in Windows 2003 Server is a great way to manage disk space. Getting this setup for a small network is usually a breeze, but with larger networks it can take quite some time to create a quota entry for every user. Luckily, we can use group policy to make this process a lot faster. In order to accomplish this task, create a new GPO and browse to Computer Configuration > Administrative Templates > System > Disk Quotas. There are several configurable aspect of disk quotas here, but in order to use any of them you have to make sure the first item in the list, "Enable disk quotas" is enabled. After doing this you can configure all of the options you could normally configure in regards to disk quotes. These include the default quota limits, the quota warning and limit settings, and the quota logging settings. After you have customized this GPO to your liking all that is left is to apply it to the organizational unit of your choice.
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