We have a DLU policy that has volatile user implimented. I have been
noticing that sometimes, the user doesn't get deleted and they have a
folder in C:\documents and settings\ and their username still exists in
the windows user management console, which causes problem with the user
not being able to logon later on. It says "Account created by Novell
Zenworks" in the description box besides the user name also.

What causes this and is there anyway we can fix it so that volatile user
works everytime?

We are running Netware 6.5 servers and Zenworks 6.5.