Clean install with home folder and multiple users

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http://askubuntu.com – I had reformatted my system (unfortunately an update failed) and had my home folder on a separate partition. Thankfully I still have all of my users files (in their respective folders), but there was no option to use this on install (since my update had failed...). How can I recreate the old users with their previous home directories? (Are there problems with user permissions with just dragging and dropping the entire contents of folders?) (HowTos)