About user account limits
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If you host sites for other organizations, you need to control how many users have access to a web. With SharePoint Team Services, you can limit the number of new user accounts that can be created on a per-virtual server basis. This way, you can safely delegate the tasks of creating and deleting accounts to the administrator of each web, but still control how many accounts can be used.
Note The user quota applies only to new local machine accounts created in SharePoint Team Services. The user quotas do not apply to user or group accounts created by using other methods or to users or groups that already exist for the site. For example, if there are accounts that were created for an existing Microsoft FrontPage 2000-based web before it was upgraded to SharePoint Team Services, those accounts do not count against the quota.
You set the user limits on the User Account Limits page. The limit you set affects the root web and all subwebs of that virtual server. Site administrators for the virtual server can add users until they reach the user account limit for the virtual server. Administrators of a subweb that has unique permissions can also add user accounts. If the user account limit for the virtual server has been reached, the administrator must delete an account before he or she can create a new one.
Site administrators can add users by using the Manage Virtual Server Accounts page. Site and subweb administrators can then give the users rights to their Web sites by adding them to a role on the Manage Users page. Site and subweb administrators can also add users by using the Manage Users page and the Send an Invitation wizard.
Important User account limit data is stored in the Owsuser.cnf file in the \Documents and Settings\All Users\Application Data\Microsoft\SharePoint\50 folder. If you are using account limits, you must back up this file whenever you back up your collaboration database and your site content. There is no other way to repair this file other than restoring it from a backup.