When an iFolder Admin user removes iFolder privileges for a given username on the iFolder server, iFolder removes the account from the account list in the user’s iFolder client. Afterwards, the user cannot reconfigure an iFolder account with the same username on the same iFolder server, unless the iFolder Admin user reconfigures privileges for the user on that server. That is expected.
However, if the iFolder client fails to set up an iFolder account with a different username on the same iFolder server, it is likely because the user was logged in to the old account when the username was removed from the server’s users list. Some residual information about the old account might prevent the user from setting up a new account on the server from that client.
To resolve this problem, exit the iFolder client, start the iFolder client again, then set up the new account with a different username that has privileges for the iFolder server.