Netboot - not geting it


I've got Panther server 10.3.9, I want to set up a service whereby *only* the user folders are on the server. I read the documentation and it indicates that yes, this is fine, the client machines can have their own disk, systems and applications.

This being the case, why does the Network Image Utility create multi-gigabyte disk images?

Is this whole thing going to be copied across the network at each boot?

Also, are the user folders this method uses the ones setup in the workgroup manager as home folders? These indicate that you can cap the size of these folders, but this doesn't seem to work. ie, I can mount them as share points and exceed the limit, and do the same locally on the server!?

I can't really test this at the moment due to lack of hardware, so sorry to ask what may be obvious questions.