Running OES2 SP1.

I just want to see if I understand directory quotas correctly.

My understanding is that if I set a directory quota to 500 MB then it
applies to all users and it's not individual? For example if user A puts
a file that's 400 MB into this directory then all the other users only
have 100 MB available and _not_ 500 MB each? Is my interpretation of the
documentation correct?

Thanks :)