What is 'server' set to in your config file? It should match 'server1' if you want it to find it. although you will probably want to change this in the future (both in the config and the directory name)
Also, look into the log file. It usually answers all of my questions when I have problems (/home/aolserver/log/server.log)
you can also add "ns_log" commands in the config file and in any TCL code and it will show up in the log file. So, for your case, I would put a ns_log Notice "$homedir $server" to get an idea of what these are set to, and if they are correct. Add this, and then retart aolserver.
--brett
