SSH Server

I'm setting up a server with some requirements that I need help defining and getting more information on. Hopefully the fine people on the forums can offer me some help. I am building a server for somebody who wants to allow students on our campus to program in a Unix-based command line environment. To access it, I need to set up SSH (I can do that!!!) that they will access from their Windows clients via putty or something.

I need my Ubuntu server to be able to join the Windows Server 2003 domain or at least just validate against it. There will not be any remote printing or accessing shares or anything like that so I do not need access to resources (though if we could, that wouldn't hurt). They mainly just need to be able to use the same passwords that they use to log in with the Windows Clients into the network. Also, we have 2 domains: one for students and one for faculty. I may need to validate against both if possible.

Since they will be using this for class, I also need their folders to be hidden from each other but admins and professors will need to access it. I understand permissions fairly well but what will be difficult is doing it for each and every student individually. Is there a way to set a default profile based on domain or can I set up a script to add student accounts? Will student accounts be added automatically if they log in and they have accounts on the domain or will they all need to be created automatically?

I'll probably think of something else later. Thanks for all the help in advance!

^^^Bump ^^^

Domain membership is done with Samba. There's a fairly extensive guide here on setting up various scenarios. Authenticating against two different domains would have the same issues it has on a Windows host -- as long as there's a suitable trust relationship between the two domains it should work fine.

I'm not too sure about the home directory arrangements -- I guess you could script the creation, but there's probably a way to make it happen automatically on first login too.