Well, the only thing I forgot to mention is that I setup these servers last week with only root and one regular user and I think both root and the regular user could login remotely to both servers via
ssh [email protected].x.x using konsole or
fish://[email protected] using konqueror.

Today, I just added about 30 new users to each server and that's when the problem began. I don't know what adding users could possibly affect, but that's all I did today and all is well on the 1GB server and noone but root can log into the 2GB server and I cannot chdir to /home unless I'm root!

BTW, I don't think it has anything to do with the size of the RAM, I'm just mentioning the RAM size so I can distinguish one server from the other for our conversation here.

Regards,
AJG