But the key is that you have to create the site as a MySite, not just as a Site that uses the right template. To do that you need to retrieve each userProfile and call the CreatePersonalSite method of that user profile. YOu can read more about
the createpersonalSite method here:
http://msdn.microsoft.com/en-us/library/microsoft.office.server.userprofiles.userprofile.createpersonalsite%28v=office.12%29.aspx
Paul Stork SharePoint Server MVP