No go bro, let me document my steps:
after configuring the OD master, i installed the afp service under server admin, then went into workgroup manager, created a test unit, then went into the home tab, then clicked the + button and entered the following:
1st option- afp://myservername.server.com/Users
2nd option- username
3rd option- /Network/Servers/myservername.server.com/Users/username.
then i clicked the create home folder button then save- then i get the same error
the afp service is running, i dont know what i am doing wrong man!