Some errors were being reported in stderr, but then they weren't really
being treated as errors.
If mkdir(2) for EEXIST, it's possible that the sysadmin pre-created the
user dir; don't fail. However, let's keep a log line, for having some
notice that it happened.
Also, run chmod(2) if mkdir(2) failed for EEXIST (so transform the
'else if' into an 'if').