Ubuntu Installation :: Adding SSH Users - Permissions Set Incorrectly?

I was just trying to add new ssh users for tonight session and really messed up badly. I first installed package ibsh (iron-bars shell). I didn't know how to use it so I just went to a new user account and added ibsh at the end of his .profile. (I wrote

Code:
sudo gedit /home/username/.profile
which I suspect is the problem, I should have written
Code:
gksu gedit /home/username/.profile
??)

Well graphical logging became impossible in my own account until I did the following in my own account:

Code:
chmod 777 .profile
chmod 777 .ICEauthority

But desktop is still empty. I have restarted the system. I cannot use Firefox (it works without output for 10 sec and then dies). Chromium says something like "Problems due to not being able to update profile" but works. (I cannot see any files on desktop. But if I do places > desktop I can see them.) All the mentioned files had -------- for permissions so I did:

Code:
chmod 777 ~/Desktop/*

How to get my system back to normal. I think I got botched up permissions. If I create new user accounts, I get several error messages in these accounts.