Putting the php.ini in the /home/username directory does not work for me. If I move it to the public_html it works. Should it work just in the users home directory?
Yes, it's fine to place it in the public_html directory. If you want to define a specific alternate location, add this entry to the .htaccess file in your public_html or a subdirectory:
Code:
suPHP_ConfigPath /home/username/public_html
Note, the above entry assumes you want to use the php.ini file from the public_html directory.