SELinux is preventing /usr/bin/xauth from 'write' accesses on the directory /home/paul.

*****  Plugin restorecon (99.5 confidence) suggests  *************************

If you want to fix the label. 
/home/paul default label should be user_home_dir_t.
Then you can run restorecon.
Do
# /sbin/restorecon -v /home/paul

*****  Plugin catchall (1.49 confidence) suggests  ***************************

If you believe that xauth should be allowed write access on the paul directory by default.
Then you should report this as a bug.
You can generate a local policy module to allow this access.
Do
allow this access for now by executing:
# grep xauth /var/log/audit/audit.log | audit2allow -M mypol
# semodule -i mypol.pp

Additional Information:
Source Context                unconfined_u:unconfined_r:xauth_t:s0-s0:c0.c1023
Target Context                unconfined_u:object_r:home_root_t:s0
Target Objects                /home/paul [ dir ]
Source                        xauth
Source Path                   /usr/bin/xauth
Port                          <Unknown>
Host                          (removed)
Source RPM Packages           xorg-x11-xauth-1.0.2-9.fc15
Target RPM Packages           
Policy RPM                    selinux-policy-3.9.16-24.fc15
Selinux Enabled               True
Policy Type                   targeted
Enforcing Mode                Enforcing
Host Name                     (removed)
Platform                      Linux (removed) 2.6.38.6-27.fc15.i686 #1 SMP Sun May
                              15 17:57:13 UTC 2011 i686 i686
Alert Count                   10
First Seen                    Wed 01 Jun 2011 04:20:23 PM EDT
Last Seen                     Wed 01 Jun 2011 04:20:41 PM EDT
Local ID                      ca55fe07-9952-4962-9d16-f99e5c764d78

Raw Audit Messages
type=AVC msg=audit(1306959641.171:195): avc:  denied  { write } for  pid=5232 comm="xauth" name="paul" dev=sda1 ino=262481 scontext=unconfined_u:unconfined_r:xauth_t:s0-s0:c0.c1023 tcontext=unconfined_u:object_r:home_root_t:s0 tclass=dir


type=SYSCALL msg=audit(1306959641.171:195): arch=i386 syscall=open success=no exit=EACCES a0=bfd3b01a a1=c1 a2=180 a3=1 items=0 ppid=5229 pid=5232 auid=500 uid=500 gid=500 euid=500 suid=500 fsuid=500 egid=500 sgid=500 fsgid=500 tty=(none) ses=9 comm=xauth exe=/usr/bin/xauth subj=unconfined_u:unconfined_r:xauth_t:s0-s0:c0.c1023 key=(null)

Hash: xauth,xauth_t,home_root_t,dir,write

audit2allow

#============= xauth_t ==============
#!!!! The source type 'xauth_t' can write to a 'dir' of the following types:
# admin_home_t, user_home_dir_t, tmp_t, user_tmp_t, nx_server_var_lib_t, xauth_tmp_t, user_home_t, var_lib_t, xdm_var_run_t

allow xauth_t home_root_t:dir write;

audit2allow -R

#============= xauth_t ==============
#!!!! The source type 'xauth_t' can write to a 'dir' of the following types:
# admin_home_t, user_home_dir_t, tmp_t, user_tmp_t, nx_server_var_lib_t, xauth_tmp_t, user_home_t, var_lib_t, xdm_var_run_t

allow xauth_t home_root_t:dir write;