Anyone seeing PHD users constantly trying to sync and recurring errors?

We have recently upgraded to 10.6.3 on our clients and server. We are seeing some strange behavior with the sync for PHDs. Short version of our setup, each user has a PHD on each client. There is a reason for this and this method has worked successfully for over 2 years so it is not the source of the problem. Log out of one, sync at logout. Log in on another, sync at log in.
We are seeing users on some machines seeing the same sync errors over and over again. The messages about the errors appearing every couple of minutes and the background sync, which is set to every 15 minutes running immediately after dismissing the errors window from the last sync. In some instances the error is a single file which may or may not be in use at the time of sync. In others it is associated with AppleWorks recent items in the userhome. We are in the process of shifting away from AppleWorks. I did see that rosetta had some changes in 10.6.3 so maybe that is part of the issue?
The only solution I have come up with is to delete the problem user on the client machine and force a recreation of the user at next login. When that has been done, the problem seems to go away.
The same user on other machines will have no errors in sync at all. There is no one machine which is a problem for everyone and no one machine which is good for everyone.
Anyone else seeing something like this or have suggestions?
Thanks - Erich

gen_bunty
Tried your method and cannot yet eradicate the problem. Files are still named the same and in the same place. Good information to have though. We may need to delete all homes for the user most notably suffering with the problem, then delete the server side FileSync folder and then recreate the user home on each client again. I'm hoping not to have to do that since two of our locations connect via VPN and there is not enough bandwidth to recreate the user quickly.

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