Okay, I am not sure the best way to explain this but I will do my best.

We need to get a script of some kind which will copy files to a directory when someone submits a form.

For example, someone comes along to the site and enters the directory in the form as "jimsmith", they hit the submit button. A load of files then get copied into the directory called "jimsmith" site.com/jimsmith. There for Jim Smith has a load of standard files in that directory.

Anyone know how to do this?

it's a pretty simple script if you know perl or php or C, etc...

I don't think you can find a ready made script to do what you want and only what you want.... Sounds like you are offering free hosting and copying a skeleton directory over :stickout

Not free hosting, but something along those lines :D

yea as said above
just get a script that allows a user to make an account (seems like it should be pretty common)

and have all the default files in /etc/skel

I don't understand?

If you are a Hosting company, why can't you just do it through your own Server/Reseller account?

Limitations of your Control Panel, perhaps?

Well we have CPanel and Hosting Controller. It would be setup on our win2k servers so the control panel used would be HC. HC has a skel directory to copy files to the account when you add a new domain, we are not wanting to add a new domain, simply a new directory and automatically without any interaction form ourselves.

Something along the lines of WebHost Free (http://www.myidealscript.com) might be what you want. The free version allows limitations to Web space, but not Data Transfer. Haven't checked out the pay-for versions, but the Free one worked just fine for me.

I know nothing about MS Servers, but Cpanel might provide you a way to at least, setup a Data Transfer limit for the whole directory you use WebHost for. This would prevent an individual from goiing nuts with Data Transfer, although all other accounts would be affected as well. Protects "you" though, from having to pay serious money in overage charges.