Fresh installation and user's management

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http://askubuntu.com – I have Ubuntu 10.10 that works perfect for me and my family. Now I would like to install a fresh 12.10 release. I have a separated /home partition. After installing a new version, I need to configure users on the system. How to add new users that will use the existing /home partition? My question is if I have user “user1” and there is /home/users1 folder. Would adding a new user “user1” delete the existing /home/user1 folder and create a new one or it will use the existing /home/user1 folder Thanks (HowTos)