Following this guy, I was able to get the folder creation part working on the first try, however because my file server is still Server 2003, the %LOGONUSER% variable won;t work on the mapping. So I changed it to %USERNAME%.. which still did not work. I was getting event 4098:
I resolved that by disabling the 'Reconnect' option in the drive mapping GPP. Weird I know but these mapping is reconnected already because the Action is Replace. So every 90+ minutes the mapping is renewed. No need to programatically set the /persistent:yes switch.
So once done and gp refreshed I had a Home drive mapped, and the folder created on my file server using %logonuser% as the folder name, and that same user had Full Control perms.
Once I get all the user data migrated to the Netapp, I might run into a syntax issue with the mapping part.. IDK for sure yet.