>> And also I can't see any ' Default User' profile folder in NETLOGON of my DC/ADC.Do I need to create the same folder by copying the customized profile from workstation? I need to do the same on ADC? or it will gets replicated to it?
The Default User profile needs to be created using the approach defined at
http://support.microsoft.com/default.aspx?kbid=319974. In step 6e of that process, you would copy the profile to the \\domain\NETLOGON\Default User location, rather then C:\Documents and Settings\Default User.
The 'Default User' directory does not exist in the NETLOGON share by default. You must create it manually. You only need to make the changes on one Domain Controller, as the NETLOGON share is replicated to all other DCs in the domain automatically.
>> What happens for all existing user profiles? Will it cause any issues for the existing users?
Existing user profiles will not be affected. The 'Default User' folder in NETLOGON will only be used for new profiles on the network.
>> And if using NETLOGON share for the default user profile instead of local PCs, does the new users profile get created on the DC or on the users local PC?
This is dependent on whether you have Roaming Profiles configured. If Roaming Profiles are in use, the profile will be created and uploaded to the Roaming Profile share at log off time. If you are using Local profiles, the profile will remain specific to each computer, will not roam, and will not be uploaded to a share on the DC.
-Matt