Folder permissions, red x on user object
Found out what was causing it, the server was part of a workgroup and I joined it to our domain. As I added users to the domain I disabled their local accounts, but did not remove them. I am guessing that because the local username was the same as the domain username(just a different UPN suffix), it was showing the disabled user icon. Once I removed the local user account completely, the red x went away on the domain account.