Gotcha,
Do the following :
backup your /etc/fstab
First run "quotacheck -avugm", you should receive "quotacheck: Can't find filesystem to check or filesystem not mounted with quota option." If not you don't have the same problem.
Next step is to open fstab, type pico /etc/fstab.
The first line will probably look something like this:
"/dev/VolGroup00/LogVol00 / ext3 defaults 1 1"
change "defaults" to "usrquota"
Now save and run "mount -o remount /" then quotacheck -avugm
Doing this will fetch you "Old group file not found. Usage will not be substracted.
done quotacheck: Checked xxxx directories and xxxx files"
Don worry, run "quotaon /"
Now, the finishing touch run "/scripts/fixquotas"
Watch and get your issue fixed :D